Unlevered Cost of Equity Beginning with the cost of capital equationthat is: RWACC = _ B_ _+S_
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Unlevered Cost of Equity Beginning with the cost of capital equation—that is:
RWACC = _ B_ _+S_ _S_ R S + _ B_ _+B_ _S_ R B show that the cost of equity capital for a levered firm can be written as follows:
RS = R0 + BS_ (R0 − RB).
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Related Book For 
Corporate Finance With Connect Access Card
ISBN: 978-1259672484
10th Edition
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
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