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Gaucho Services starts life with all equity financing and a cost of equity of 15%. Suppose it refinances to the following market-value capital structure Debt
Gaucho Services starts life with all equity financing and a cost of equity of 15%. Suppose it refinances to the following market-value capital structure Debt (D) Equity (E) 43% 5796 atrb . 10.2% Use MM's proposition 2 to calculate the new cost of equity. Gaucho pays taxes at a marginal rate o-= 30% calculations. Enter your answer as a percent rounded to 2 decimal places.) a cuate Ga os ate bo not round inter tax weighted-average cost o capital ediate After-tax WACC
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