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Hastin Inc. has a WACC of 14%. Hastin is evaluating a capital structure change from a D/E ratio of 1 to a D/E ratio of

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Hastin Inc. has a WACC of 14%. Hastin is evaluating a capital structure change from a D/E ratio of 1 to a D/E ratio of 0.25. With the change. Hastin's new beta will be 0.8. If treasury bills yield 4% and the expected market return is 13.5% and Hastin pays no taxes, what is the new required return for debt? 21.20% 33.20% 23.60x 1400K

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