The market value of Rudyard Incorporated's debt is $200,000 and its yield is 9%.The firm's equity has a market value of $300,000, its earnings are growing at a rate of 5%, and its tax rate is 25%.A similar firm with no debt has a cost of equity of 12%.Using the compressed adjusted present value model, what is Rudyard's cost of equity?

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The Answer of The market value of Rudyard Incorporated's debt is $200,000 and its yield is 9%.The firm's equity has a market value of $300,000, its earnings are growing at a rate of 5%, and its tax rate is 25%.A similar firm with no debt has a cost of equity of 12%.Using the compressed adjusted present value model, what is Rudyard's cost of equity?

The Market Value of Rudyard Incorporated's Debt Is $200,000 and Its