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A Firm Has a Market Value of Equity of $30,000

Question 93

Multiple Choice

A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?


A) 16.75%
B) 6.70%
C) 20.10%
D) 23.45%

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