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a. How much debt does the company now have? b. How much equity does it now have? c. What is the overall cost of
a. How much debt does the company now have? b. How much equity does it now have? c. What is the overall cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) d. What is the percentage increase in earnings per share after the refinancing? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) e. What is the new price-earnings multiple? (Hint: Has anything happened to the stock price?) (Round your answers to 2 decimal place.) Answer is complete but not entirely correct. a. Company's current debt $ 2,000,000 b. Company's current equity $ 1,200,000 C. Overall cost of capital 9.1 % d. Earning per share e. New price-earnings multiple 46.92 % 18.87
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