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James Bay Water Park Company Operates in a World with Zero

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James Bay Water Park Company operates in a world with zero taxes and no financial distress.The firm has a debt/equity ratio of 1.The cost of equity is 12 percent and the cost of debt is 5 percent.The only difference between Lanudiere Resort Company and James Bay Water Park is that Lanudiere Resort has a debt/equity ratio of 0.What is the cost of equity for Lanudiere Resort?


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