Duques Corp is 100 equity financed Its cost of equity is 12 The firm plans to issue bond to repurchase 40 of its shares The firm's investment bankers have informed her that since the new issue of bond is risky, bond holders will demand 6 , which is 2 above the risk free rate The beta of unlevered ...

A To calculate the new company cost of capital WACC we need to find the proportion of equity and deb ...

Duques Corp. is 100% equity financed. Its cost of equity is 12%. The firm plans to...

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Principles of Corporate Finance

ISBN: 978-0077404895

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Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Duques Corp. is 100% equity financed. Its cost of equity is 12%. The firm plans to...

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