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EpiscoWhat EpiscoWhat
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6 years ago
Suppose that to raise the funds for the initial investment the firm borrows $40,000 at the risk free rate and issues new equity to cover the remainder.  In this situation, the cost of capital for the firm's levered equity is closest to:
A) 23%
B) 25%
C) 15%
D) 18%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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pbrown223pbrown223
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6 years ago
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