What is the cost of equity for a firm for which the

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What is the cost of equity for a firm for which the required return on assets (RA) is 14%, the cost of debt is 11%, and a target debt/equity ratio is .50?

1. 11.0%
2. 12.5%
3. 14.0%
4. 15.5%
5. 16.0%

Reference no: EM13572606

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