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NO EXCEL SOLUTIONS Please use the following information to answer the next TWO questions. ThreeTree Inc. has an unlevered cost of capital of 18%, a
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Please use the following information to answer the next TWO questions. ThreeTree Inc. has an unlevered cost of capital of 18%, a cost of debt of 6%, and is 35% financed with debt. There are no corporate taxes. 21. What would be the firm's levered cost of equity? A) 14.25% B) 18.00% C) 16.00% D) 17.11% E) 24.46% 22. If the firm were to change its capital structure so that it is financed with 60% debt, what would be the new WACC? A) 18.00% B) 13.67% C) 16.79% D) 25.20% E) 24.46% Step by Step Solution
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