Question 20 (1 point) A company has an EBIT of $4,405 in perpetuity. The unlevered cost of capital is 15.74%, and there are 25,010 common shares outstanding. The company is considering issuing $9,660 in new bonds at par to add financial leverage. The proceeds of the debt issue will be used to repurchase equity. The YTM of the new debt is 10.83% and the tax rate is 32%. What is the cost of the levered equity after the restructuring? 17.41% 17.87% 18.33% 18.79% 19.24% Previous Page Next Page Page 20 of 25