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Eastman Chemical presently has a D/E ratio of 1. Eastman Chemical's cost of debt is 4 percent. The firm's WACC is currently is 8 percent
Eastman Chemical presently has a D/E ratio of 1. Eastman Chemical's cost of debt is 4 percent. The firm's WACC is currently is 8 percent and imagine that there is no corporate tax. What is Eastman Chemical's cost of equity? Hint: The no tax case is Case 1, where Re = RA + (RA - RD)(D/E). 12% 8% 13% O 7%
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