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Fuji Incis Registered as a Business in the Film-Making Industry and and Has

Question 21

Multiple Choice

Fuji Inc.is registered as a business in the film-making industry and has a required return on its assets of 10%.It can borrow in the debt market at 5%.If there are no taxes and M&M's proposition II holds,what is the cost of equity if there is 100% equity financing?


A) 10%
B) 11%
C) 12%
D) 13%

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