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Self-Study Problem 13.05 l Your answer is partially correct. Try again You are analyzing a firm that is financed with 55 percent debt and 40
Self-Study Problem 13.05 l Your answer is partially correct. Try again You are analyzing a firm that is financed with 55 percent debt and 40 percent equity. The current cost of debt financing is 8 percent, but due to a recent downgrade by the rating agencies, the firm's cost of debt is expected to increase to 9 percent immediately How will this increase change the firm's weighted average cost of capital f you ignore taxes? (Round answer to 2 decimal places, eg. 15.25%.) increase 0.55 Ignoring taxes firm's weighted average cost of capital will If you consider taxes and the firm is subject to30 percent marginal tax rate? (Round answer to 3 decimal places, eg. ,s.250%.) 1.4 Considering taxes firm's welghted average cost of capital will
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