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(Cost of equity) The cost of capital is 10%, the after-tax cost of debt is 5%, and the firm is 50% debt financed. What is the cost of equity?

(Cost of equity) The cost of capital is 10%, the after-tax cost of debt is 5%, and the firm is
50% debt financed. What is the cost of equity?

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538050_FIN.docx

The cost of capital is 10%, the after-tax cost of debt is 5%, and the firm is
50% debt financed. What is the cost of equity?
Solution:
Cost of capital = after tax cost of debt * debt financed +...

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