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A company has no debt but can borrow at 5.8%. Its WACC is 9.1% and its corporate tax rate is 22%. What is the firms
A company has no debt but can borrow at 5.8%. Its WACC is 9.1% and its corporate tax rate is 22%. What is the firms cost of equity? If the firm increases its debt to 25%, what would be its new cost of equity? If the firm increases its debt to 50%, what would be its new cost of equity? What is the firms WACC with a debt of 25%? And with a debt of
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