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According to the capital pricing model, what is this company's cost of equity capital? 12.80% Question 10 6 pts WalkerCo currently has no debt and

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According to the capital pricing model, what is this company's cost of equity capital? 12.80% Question 10 6 pts WalkerCo currently has no debt and has 10 million shares of common stock outstanding. The stock is currently selling for $50 per share. The firm's weighted average cost of capital is 14 percent. The company plans to issue $ 100 million in bonds and use the money to repurchase 2 million shares of its common stock. The cost of the firm's debt is 8 percent. The company's tax rate is 40 percent According to the Miller and Modigliani theories, what is the expected price per share of this firm's common stock after this change in capital structure? What is the firm's expected weighted average cost of capital after this change in capital structure? Round your final answer to 4 decimal places. U Question 11 2 pts When considering the potential arency problem in a publicly traded corporation, the mananers are e G Search or type URL # $ % & 3 4 5 6 7 8 9 0 E - R T Y U 0 F

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