Question: Suppose you borrow $ 1 3 5 1 3 . 1 0 when financing a gym valued at $ 4 4 9 7 9 .

Suppose you borrow $13513.10 when financing a gym valued at $44979.80. Assume that the unlevered cost of the gym is 21.69% and that the cost of debt is valued at 10.10%. What should be the cost of equity of your firm?

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