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Soundbord Corporation has a WACC of 16%. Its cost of debt is 12%. If Soundbord Corporation's debt- equity ratio is 2, what is its cost
Soundbord Corporation has a WACC of 16%. Its cost of debt is 12%. If Soundbord Corporation's debt- equity ratio is 2, what is its cost of equity capital? Ignore taxes in your answer. 3. Romano Inc an EBIT of $100,000 every year forever. Romano Inc can borrow at 7%. Suppose Romano Inc currently has no debt, and its cost of equity is 17% a) If the corporate tax rate is 35%, what is the value of the firm? b) What will the value be if Romano Inc borrows $150,000 and uses the proceeds to repurchase stock
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