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Goodyear maintains a constant debt - equity ratio. a . What is Goodyear's WACC? b . What is Goodyear's unlevered cost of capital? c .

Goodyear maintains a constant debt

-

equity ratio.

.

What is Goodyear's WACC?

.

What is Goodyear's unlevered cost of capital?

.

Explain, intuitively, why Goodyear's unlevered cost of capital is less than its equity cost of capital and higher than its WACC.

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