Question
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 taxes are 20%,what would the new cost of equity be after the debt issuance and share buy back?
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Foreign Direct Investment Smart Approaches To Differentiation And Engagement
Authors: Daniel Nicholls
1st Edition
1409423573,1409471381
