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What will be the expected equity return or cost of equity

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Reference no: EM132600086

Question 1: According to Modigliani and Miller (M&M), in a world of perfect capital markets, what will be the expected equity return (or cost of equity) for a firm that has a cost of capital of 10 percent, a cost of debt of 6 percent, debt valued at $1.2 million, and equity valued at $1.0 million?

Reference no: EM132600086

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