Suppose you borrow $8000 when financing a coffee shop which is valued at $30000. Assume that the

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Suppose you borrow $8000 when financing a coffee shop which is valued at $30000. Assume that the unlevered cost equity of the coffee shop is 15% and that the cost of debt is valued at 5%.

What should be the cost of equity of your firm?

Related Book For answer-question

Entrepreneurship and Effective Small Business Management

ISBN: 978-0133506327

11th edition

Authors: Norman M. Scarborough, Jeffrey R. Cornwall

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Posted Date: Dec 15, 2020 08:20 PM

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Suppose you borrow $8000 when financing a coffee shop which is valued at $30000. Assume that the

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Value of the coffee shop with out debt 30000 Value of debt80... View the full answer

Entrepreneurship and Effective Small Business Management

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