A firm has zero debt and a weighted average cost of capital of 11.8 percent. The firm
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A firm has zero debt and a weighted average cost of capital of 11.8 percent. The firm is considering a new capital structure with a debt-equity ratio of 0.7. The interest rate on the debt would be 5.2 percent and the corporate tax rate is 34 percent. What would be the cost of equity with the new capital structure?
Related Book For
College Physics
ISBN: 978-0495113690
7th Edition
Authors: Raymond A. Serway, Jerry S. Faughn, Chris Vuille, Charles A. Bennett
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