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What is the pre-tax cost of debt based on mm proposition

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The Backwoods Lumber Co. has a debt-equity ratio of 0.83. The firm's required return on assets is 10% and its cost of equity is 17%.

What is the pre-tax cost of debt based on MM Proposition II with no taxes? (Answer in percentage terms. Round answer to 2 decimal places, do not round intermediate calculations)

Reference no: EM131970653

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