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Shadow Corp. has no debt but can borrow at 6.1 percent. The firm's WACC is currently 8.4 percent and the,tax rate is 2r percent. a.
Shadow Corp. has no debt but can borrow at 6.1 percent. The firm's WACC is currently 8.4 percent and the,tax rate is 2r percent.
a. What is thw company's cost of equity? b. If the firm converts to 40 percent debt, what will it's cost of equity be? c. If the firm converts to 60 percent debt, what will it's cost of equity be? d1. If the firm converts to 40 percent debt, what is the company"s WACC? d2. If the,firm converts to 60 percent,debt, what is the,company's WACC?
a. Cost of equity= b. Cost of equity= b. Cost of equity= d1. WACC d2. WACC
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