Question
Your firm has a debt-equity ratio of .60. Your cost of equity is 11% and your after-tax cost of debt is 7%. What will your
Your firm has a debt-equity ratio of .60. Your cost of equity is 11% and your after-tax cost of debt is 7%. What will your cost of equity be if the target capital structure becomes a 50/50 mix of debt and equity, holding everything else constant?
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Handbook For Surviving The Global Financial Crisis
Authors: Barbara Goldsmith
1st Edition
1514811995, 978-1514811993
