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What is the firm cost of equity

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Question - The pizza shoppe has debt with both a face and market value of $24,000 and a coupon rate of 6.4 percent. The expected earnings before interest and taxes are $21,400, the tax rate is 35 percent, and the unlevered cost of capital is 11/4 percent. What is the firm's cost of equity?

Reference no: EM132858202

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