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A Firm Has a Market Value of Assets of $50,000

Question 32

Multiple Choice

A firm has a market value of assets of $50,000.It borrows $10,000 at 3%.If the unlevered cost of equity is 15%,what is the firm's cost of equity capital?


A) 15%
B) 16%
C) 17%
D) 18%
E) 19%

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