Find the cost of equity. Cost of debt = 7% Cost of capital (unlevered) = 12% $3,000,000 debt (selling at par value). Fir

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answerhappygod
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Find the cost of equity. Cost of debt = 7% Cost of capital (unlevered) = 12% $3,000,000 debt (selling at par value). Fir

Post by answerhappygod »

Find the cost of equity.
Cost of debt = 7%
Cost of capital (unlevered) = 12%
$3,000,000 debt (selling at par value).
Firm value (levered) = $9,000,000
Tax rate = 40%
Thank you.
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