A firm has a market value of assets of $50 000. It borrows $10 000 at 5%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?
A)19.2%
B)20.6%
C)17.5%
D)18.5%

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The Answer of A firm has a market value of assets of $50 000. It borrows $10 000 at 5%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?
A)19.2%
B)20.6%
C)17.5%
D)18.5%

A Firm Has a Market Value of Assets of $50