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Brinx is currently a levered firm. The company has a levered cost of equity of 12.60 percent and a pretax cost of debt of 6.5
- Brinx is currently a levered firm. The company has a levered cost of equity of 12.60 percent and a pretax cost of debt of 6.5 percent. If the company is unlevered, its cost of capital will be 9.54%. The tax rate is 37 percent. What is the company's current debt-equity ratio?
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To calculate the companys current debtequity ratio we can use the formula DebtEquity Ratio ...
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
