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Current target capital structure is 15% debt, 2% preferred stock and 83% common equity. If changed to 50% equity and 50% debt (by issuing additional
Current target capital structure is 15% debt, 2% preferred stock and 83% common equity. If changed to 50% equity and 50% debt (by issuing additional debt, and using proceeds to buy back 33% equity and 2% preferred stock, will the cost of debt change? Or will it remain the same as before this change?
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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