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What will be the expected equity return for a firm

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Question 1: According to Madigliani and Miller, in a work of perfect capital markets, what will be the expected equity return (or cost of equity) for a firm that ha a cost of capital of 10%, a cost of debt of 6%, debt valued at $1.2 milliion, and equity valued at $1.0 million?

Reference no: EM132496335

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