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4. Suppose that ra = 20%, rp= 10%, and corporate tax rate is 40%. On the grid paper below please draw changes in the cost
4. Suppose that ra = 20%, rp= 10%, and corporate tax rate is 40%. On the grid paper below please draw changes in the cost of capital (ra and rwacC), cost of equity (re), cost of debt (ra) and after- tax cost of debt in relation to Debt-to-Value ratio in the world with corporate taxes. Please be precise, indicate all important points/values on the graph Cost of Capital / equity / debt Debt-to-Value ratio 100% 100 4. Suppose that ra = 20%, rp= 10%, and corporate tax rate is 40%. On the grid paper below please draw changes in the cost of capital (ra and rwacC), cost of equity (re), cost of debt (ra) and after- tax cost of debt in relation to Debt-to-Value ratio in the world with corporate taxes. Please be precise, indicate all important points/values on the graph Cost of Capital / equity / debt Debt-to-Value ratio 100% 100
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