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A company is considering expansion into a new market. This will cost $500,000. The company has 30% debt and 70% equity in its capital structure.
A company is considering expansion into a new market. This will cost $500,000. The company has 30% debt and 70% equity in its capital structure. The firms cost of debt is 7% and its cost of equity is 12%. The firms tax rate is 30%. What is the firms cost of capital
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
