8. The management of XYZ Company, subscribing to the NOI approach, believes that its cost of debt...

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● 8. The management of XYZ Company, subscribing to the NOI approach, believes that its cost of debt and overall Cost of Capital will remain at 7% and 14%, respectively. If the equity shareholders of the firm demand a return of 25%, what should be the proportion of debt and equity in the firm’s Capital Structure? Assume that there are no taxes.

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