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Your company maintains a target D/V ratio of 20% . Its equity beta is 1.4 , and its debt beta is zero. The risk-free rate

Your company maintains a target D/V ratio of 20% . Its equity beta is 1.4 , and its debt beta is zero. The risk-free rate is 3% , and the market risk premium is 5% 1. What is the equity cost of capital for your company? 2. What would the company's equity beta be if it did not have leverage?

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