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Sandhill Corp. currently has a WACC of 18 percent. If the cost of debt for the firm is 11 percent and the firm is currently
Sandhill Corp. currently has a WACC of 18 percent. If the cost of debt for the firm is 11 percent and the firm is currently financed with 30 percent debt, then what is the current cost of equity capital for the firm? Assume that the assumptions in Modigliani and Miller's Proposition 1 hold. (Round answee to 2 decimal places, eg. 17.54%.)
Current cost of equity capital:
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Capital Market Instruments Analysis And Valuation
Authors: M. Choudhry, D. Joannas, G. Landuyt, R. Pereira, R. Pienaar
3rd Edition
0230576036, 9780230576032
