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Suppose VOL, Inc. wants to increase the level of debt from 0% to 30%. Using the Compressed APV model (not Hamada!) from Chapter 17, calculate

image text in transcribedSuppose VOL, Inc. wants to increase the level of debt from 0% to 30%. Using the Compressed APV model (not Hamada!) from Chapter 17, calculate Vol's new levered required return. a. 12.57% b. 13.20% c. 13.86% d. 14.55% e. 15.28%

The answer is C but I dont know how to calculate for it

Consider the following information for VOL, Inc. for the next 2 problems. beta risk free rate Market risk premium Current weight debt Current weight equity Tax rate required return on debt 7%

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