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Question: a firm is worth 100 million and has a cost...

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A firm is worth $100 million and has a cost of capital of 11%. It is all equity financed. If the firm sells $30 million of debt with a 7% promised return and uses it to repurchase part of the firms stock, what will the firms cost of capital then be? O Not determinable O 10.4% 9.8% O 11.0%

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