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Young & Creative Inc. has a debt-equity ratio of 0.70. The cost of equity is...

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Finance

Young & Creative Inc. has a debt-equity ratio of 0.70. The cost of equity is 15 percent and the aftertax cost of debt is 5 percent. What will the firm's cost of equity be if the debt-equity ratio is revised to 0.80?

10.89 percent

11.47 percent

11.70 percent

13.89 percent

15.59 percent

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