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Greene Inc. has a required return on assets of 15%, a cost of debt of 8%, and is 35% financed with debt. There are no
Greene Inc. has a required return on assets of 15%, a cost of debt of 8%, and is 35% financed with debt. There are no corporate taxes. 21. What is the firms levered cost of equity? A) 13.52% B) 18.77% C) 15.00% D) 17.11% E) 19.31% 22. If the firm were to change its capital structure so that it is financed with 50% debt, what would be the new WACC? A) 15.00% B) 13.38% C) 16.79% D) 11.50% E) None of the above.
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