Question: 1. Master Inc. (PLEASE DON'T USE EXCEL. SHOW ALL WORK BY HAND.) Master has no debt and its cost of equity capital is 10%. The

 1. Master Inc. (PLEASE DON'T USE EXCEL. SHOW ALL WORK BY

1. Master Inc. (PLEASE DON'T USE EXCEL. SHOW ALL WORK BY HAND.) Master has no debt and its cost of equity capital is 10%. The average debt-to-value for companies in Master's industry is 20%. What would its cost of equity capital be if it took on the average amount of debt for its industry, at a cost of debt capital of 5%? Assume perfect markets

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