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Green boxes are answers. Explain how to get the answers using EXCEL Tell Me More, Corp. is an all-equity firm. It's cost of capital is
Green boxes are answers. Explain how to get the answers using EXCEL
Tell Me More, Corp. is an all-equity firm. It's cost of capital is 18.15%. It wants to change its capital structure by adding leverage of 43%. They estimate the cost of debt would be 6.3%, are assuming no risk of default and they anticipate that they would maintain that level of debt forever. Their tax rate is 20%. What would be their anticipated cost of equity and resulting weighted average cost of capitalStep by Step Solution
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