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Business, 17.12.2021 04:40 Nakieapowell1276

A firm has zero debt in its capital structure and has an overall cost of capital of 10 percent. The firm is considering a new capital structure with 65 percent debt at an interest rate of 8 percent. Assuming there are no taxes or other imperfections, what would be the cost of equity with the new capital structure? A) 9 percent B) 12.50 percent C) 13.71 percent D) 14 percent

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