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A Corporate's WACC is 10%. The current debt-to-equity ratio is 0.25. Tax rate is 20%. The cost of debt is 4%. It is planning to
A Corporate's WACC is 10%. The current debt-to-equity ratio is 0.25. Tax rate is 20%. The cost of debt is 4%. It is planning to change its debt-to-equity ratio to 0.5. What is the new WACC with the new debt-to-equity ratio?
A corporate's business risk (Ru) is 9% in the industry. The debt-to-equity ratio is 0.2. The cost of debt is 4%. The tax rate is 20%. What is the required return of equity (Re)?
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