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Tardy Clocks Inc

question 66

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Tardy Clocks Inc.(TC) has long term bonds with a face value of $6M,the coupon rate on the bonds is 6% and the yield on the bonds is also 6%.The unlevered cost of equity is 10% and the value of TC's equity is $9.1M.The corporate tax rate is 35%.What is the required return of shareholders at Tardy?

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