Question
RECAPITALIZATION Currently, Forever Flowers Inc. has a capital structure consisting of 75% debt and 25% equity. Forever's financial staff is considering changing its capital structure
RECAPITALIZATION
Currently, Forever Flowers Inc. has a capital structure consisting of 75% debt and 25% equity. Forever's financial staff is considering changing its capital structure to 40% debt and 60% equity. If the company went ahead with this change, how would this impact the companys cost of capital? Would you recommend this change? Describe the impact of changing the capital structure.
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner
4th Edition
