With no debt a firm's cost of capital is .15. The fmn's value is $10,000,000. It can
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With no debt a firm's cost of capital is .15. The fmn's value is
$10,000,000. It can borrow $8,000,000 in substitution for stock at a cost oLIO.
What would be the cost ofequity ifthe $8,000,000 is borrowed?
What is the new WACC?
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