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RIVN is considering the following change: The firm will recapitalize by setting the new D / V ratio to 0 . 5 0 ( i

RIVN is considering the following change: The firm will recapitalize by setting the new D/V ratio to 0.50(i.e. New D/V =0.50). Cost of Debt (RD) will either increase or decrease by 1.75%, i.e. New RD = Old RD +/-1.75%(you have to figure out whether the recapitalization would lead to increase vs. decrease in RD).
A) What will be RIVN Cost of Equity (RE) after recapitalization?
B) What will be RIVN Cost of Debt (RD) after recapitalization?
C) What will be RIVN WACC after recapitalization?
D) Will the recapitalization likely result in value creation for RIVN? (Hint: This is not a philosophical question. Your answer must be based on numbers.)(Show work and formulas used)

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