b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (D/V =

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b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (D/V = 0.30). What will be the company’s WACC at the new capital structure? The borrowing rate is 7.5% and the tax rate is 21%.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:02 AM

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b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (D/V =

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Principles Of Corporate Finance

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