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A month ago
A firm has a market value of assets of $50,000.  It borrows $10,000 at 5%.  If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?

▸ 20.6%

▸ 19.2%

▸ 18.5%

17.5%
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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A month ago
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17.5%
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