Question
1. Electrostat, Inc is currently an all-equity company with cost of capital of 15%. Electrostat is planning to repurchase some of its outstanding shares by
1. Electrostat, Inc is currently an all-equity company with cost of capital of 15%. Electrostat is planning to repurchase some of its outstanding shares by using the proceeds from new AA-rated debt with YTM = 3.5%. After the recapitalization, Electrostats debt-to-equity ratio will be 0.4. Find Electrostats cost of equity after the recapitalization
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
