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please help me with a One of your new employees nobes thal your debt has a lower cost of captal (5%) than your equby (145).
please help me with a
One of your new employees nobes thal your debt has a lower cost of captal (5\%) than your equby (145). 5 a, he wyoess that the frm swap its captal atructure trom 33% debt and 67\%s equify 5 67% debt and 33% equfy instead. He esimases that ahter the swap, your cost of equity would be 19% a. What would be your new cost of debtr Mabe your calculations based on your frmis pro-tax Wacc. b. Have you lowered your overall cost of capitar? a. The new cost of debt is 4. (Rhound to two decmal places) Step by Step Solution
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