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1. What would be Lucky's estimated cost of equity if it changed its capital structure to 40% debt and 60% equity? 2. What would be
1. What would be Lucky's estimated cost of equity if it changed its capital structure to 40% debt and 60% equity? 2. What would be Lucky's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity? 3. Based on cost of equity estimations, should the firm change its capital structure? if yes, which point is optimal if the target is to minimize the cost of equity of the firm?
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