Question: Suppose you borrow $333000 when financing a tea shop which is valued at $470000. Assume that the unlevered cost equity of the coffee shop is

Suppose you borrow $333000 when financing a tea shop which is valued at $470000. Assume that the unlevered cost equity of the coffee shop is 14.5% and that the cost of debt is valued at 7.5%. What is the cost of equity of the tea shop?

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