Question: Suppose you borrow $ 1 , 0 0 0 , 0 0 0 when financing a coffee shop which is valued at $ 1 ,

Suppose you borrow $1,000,000 when financing a coffee shop which is valued at $1,300,000. You expect to generate a cash flow of $1,400,000 at the end of the year. The cost of debt is 5.5%. What is the cost of equity? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

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