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What is the firm cost of equity for kimberly

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Reference no: EM132864822

Question 1: The Kimberly Corporation is a zero growth firm with equity value of $87,500 and a corporate tax rate of 30%. Kimberly uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. What is the firm's cost of equity?

Reference no: EM132864822

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