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in a perfect capital market, a firm currently has $10m debt at cost of 5%...

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Finance

in a perfect capital market, a firm currently has $10m debt at cost of 5% and $10m equity at cost of 10%. what should be its unlevered cost of equity before it raises any debt? ( Single Choice) Answer 1: 10% Answer 2: 7.5% Answer 3: 5% Answer 4: 15% Answer 5: none of the above

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