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Rivoli is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 4 0 % debt based
Rivoli is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with debt based on market values, its cost of equity, rs will increase to to reflect the increased risk. Bonds can be sold at a cost, rd of Based on the new capital structure, what is the new weighted average cost of capital? Round your answer to three decimal places. What is the remaining number of shares? Do not round intermediate calculations. Round your answer to the nearest whole number.
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