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A company with EBIT of $4,000 and is entirely financed by equity with a WACC of 8% is planning to issue $25,000 of debt at

A company with EBIT of $4,000 and is entirely financed by equity with a WACC of 8% is planning to issue $25,000 of debt at 4% to buy back equity. Assuming there are no taxes what would the new cost of equity be after the debt issuance and share buy back?

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