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Gamer Co. has no debt. Its cost of capital is 9.4 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate

Gamer Co. has no debt. Its cost of capital is 9.4 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate on the debt is 6.5 percent. Ignore taxes for this problem.

What is the companys new cost of equity?

What is its new WACC?

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