Please show work.,,Firm L has debt with a market value of $200,000 and a yield of nine percent. The firm’s equity has a market value of $300,000, its earnings are growing at a rate of five percent, and its tax rate is 40 percent. A similar firm with no debt has a cost of equity of 12 percent. Under the MM extension with growth, what is Firm L’s cost of equity? ,,(a) 11.4%,(b) 12.0%,(c) 12.6%,(d) 13.3%,(e) 14.0% ,
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