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However Tech is currently an all-equity firm that has 320,000 shares of stock outstanding with a market price of $ 19 a share. The current
However Tech is currently an all-equity firm that has 320,000 shares of stock outstanding with a market price of $ 19 a share. The current cost of equity is 15.4 percent and the tax rate is 34 percent. The firm is considering adding $ l.2 million of debt with a coupon rate of X percent to its capital structure. The debt will be sold at par value. What is the levered of the equity? $5.209 million $5.288 million $5.312 million A $6.512 million
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