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b) Now assume that Simtel sells its real estate services division at its estimated value and uses the funds to retim debt. This will cause

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b) Now assume that Simtel sells its real estate services division at its estimated value and uses the funds to retim debt. This will cause its rating to rise to A and the default spread on its bonds to drop to 1.5%. Estimate the new cost of capital for Simtel. What are the assumptions you make in deriving the WACC

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