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Abbacus Capital has a 13% WACC and a 22% expected return on equity with a capital structure of 50% debt-to-assets. If Abbacus pays no income
Abbacus Capital has a 13% WACC and a 22% expected return on equity with a capital structure of 50% debt-to-assets. If Abbacus pays no income tax, what is the expected return on debt? If the debt. to-asset ratio increases to 70%, now what is the firm's WACC? 6.50% return on debt; 14.25% WACC 0 6.50% return on debt; 11.15% WACC 4.00% return on debt: 13.00% WACC 4.00% return on debt: 13.80% WACC
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