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Sas company is financed entirely by common stock. the firm pays no taxes. the stock price offers a 10% expected return ( unlearved rate of
Sas company is financed entirely by common stock. the firm pays no taxes. the stock price offers a 10% expected return ( unlearved rate of return ). the company decides to repurchase half the common stock and substitute with an equal value of debt. the debt yields a risk free rate of 5?%.
What is the required return on common stock after the refinancing? what is the required return on the company after refinancing I.E weighted average cost of capital?
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