Question: Suppose you borrow $90,000 when financing a coffee shop which is valued at $125,000. Assume that the unlevered cost of capital for the coffee shop

Suppose you borrow $90,000 when financing a coffee shop which is valued at $125,000. Assume that the unlevered cost of capital for the coffee shop is 7.5% and that the cost of debt is valued at 4%. What should be the cost of equity of your firm? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05

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