Question
Glacier Inc. has no long-term debt. Its cost of equity is 12% and there are no taxes. The board of directors decided to change its
Glacier Inc. has no long-term debt. Its cost of equity is 12% and there are no taxes.
The board of directors decided to change its capital structure such that the debt/equity ratio becomes 0.8. The company can borrow at an interest rate of 7%. What is the new WACC (without taxes)?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
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