Question: 2. Suppose you borrow $16000 when financing a gym which is valued at $30000. Assume that the unlevered cost of the gym is 15% and

2. Suppose you borrow $16000 when financing a gym which is valued at $30000. Assume that the unlevered cost of the gym is 15% and that the cost of debt is valued at 6%. What should be the cost of equity of your firm? If the debt-to-value ratio goes to 75%, what should be the cost of equity? What would be the WACC

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