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Kunitz Co. has no debt. Its cost of capital is 10.2 percent. Suppose Kunitz converts to a debt-equity ratio of 1. The interest rate on
Kunitz Co. has no debt. Its cost of capital is 10.2 percent. Suppose Kunitz converts to a debt-equity ratio of 1. The interest rate on the debt is 7.3 percent. Ignore taxes for this problem. |
Requirement 1: |
What is the company |
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