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Jim Corporation has a debt to equity ratio of 2.5 and the firm's WACC is 12%. Its pretax cost of debt is 7% and it
Jim Corporation has a debt to equity ratio of 2.5 and the firm's WACC is 12%. Its pretax cost of debt is 7% and it has a marginal tax rate of 35%.
What is Jim Corporation's cost of equity?
What is Jim Corporation's unlevered cost of equity?
What would Jim Corportation's weighted average cost of capital be if the debt to equity ratio were 1.5?
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