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According to Miller and Modigliani 1, if UHT plc is financed entirely by equity and...

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Finance

According to Miller and Modigliani 1, if UHT plc is financed entirely by equity and has a cost of equity of 15%, which of the following will be nearest to the companys cost of equity if it replaces 30% of its equity finance with 6% loan stock issued at par? A. 15.0% B. 10.5% C. 21.5% D. 18.9% E. 23.7%

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