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Question 3 4 pts Hansburg Industrial currently has a WACC of 16.4%. Hansburg is considering changing its capital structure from a D/E ratio of 1
Question 3 4 pts Hansburg Industrial currently has a WACC of 16.4%. Hansburg is considering changing its capital structure from a D/E ratio of 1 to a D/E ratio of 2. With the change, Hansburg's new beta will be 1.5. If treasury bills yield 3% and the expected market return is 11% and Hansburg pays no taxes, what is the new required return for debt? ? 14.20% ? 17.10% ? 15.70% ? 16.40%
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