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The weighted average cost of capital for firm X is currently 12%. Firm X is considering a new project but must raise new debt to
The weighted average cost of capital for firm X is currently 12%. Firm X is considering a new project but must raise new debt to finance the project. Debt represents 25% of the capital structure. If the after tax cost of debt will rise from 6% to 7%, what is the new cost of capital?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
