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Homework: Problem Set 6 Save 10 of 11 (1 complete) HW Score: 0%, 0 of 11 pts Score: 0 of 1 pt P16-11 (similar to)
Homework: Problem Set 6 Save 10 of 11 (1 complete) HW Score: 0%, 0 of 11 pts Score: 0 of 1 pt P16-11 (similar to) Is Question Help O Modigliani and Miller's world of no taxes. Air Seattle is looking to change its capital structure from an all-equity firm to a levered firm with 20% debt and 80% equity. Air Seattle is a not-for-profit company and therefore pays no taxes. If the required rate on the assols (R) of Air Seatte is 19%, what is the current required cost of equily (when Air Seattle is an all-equity firm)? What is the now required cost of equity if the cost of debt is 14%? What is the current required cost of equity of Air Seattle if it is an all-equity firrn? % (Round to the nearest whole percent.) Enter your answer in the answer box and then click Check Answer. 5 part remaining Clear All
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