Question: Scholastic Toys is considering developing and distributing a new board game for children. The project is similar in risk to the firm's current operations. The

Scholastic Toys is considering developing and distributing a new board game for children. The project is similar in risk to the firm's current operations. The firm maintains a debt-equity ratio of 0.40 and retains all profits to fund the firm's rapid growth. How should the firm determine its cost of equity

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