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It says to finance the company Stl og Hnfur, but until now the company has been financed only with equity. Now the company will also

It says to finance the company "Stál og Hnífur", but until now the company has been financed only with equity. Now the company will also be financed with debt, bonds will be bought to buy up the share capital so that the capital structure will be 1:1. The company's total assets are 600,000. Book value and market value are the same but the outstanding shares are 800. Interest on loans is 7%. Three possibilities are assumed, an economic recession and then students calculate an income of 12,000 then a normal annual trip with an income of 13,000 and then expansion , but then they calculate 14,000 in revenue What is the return on equity for the unweighted and weighted company and what is the weighted cost of capital (WACC) for the unweighted and weighted company?

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