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Question 18 0.5 points Gut Coast fours currently has a weighted average cost of capital of 12.4 percent based on a combination of debt and
Question 18 0.5 points Gut Coast fours currently has a weighted average cost of capital of 12.4 percent based on a combination of debt and equity financing The frm has no preferred stock. The curent da equity rato is 47 and the aftertax cost of debt is 0.1 percent. The company at hand a new president who is considenng eliminating all debt financing. All else constant, what will the firm's cost of capital be if the firm switches to an all-equity firm O 12.02 percent O 12.89 percent 13.37 percent O 15.45 percent 15.36 percent
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