sheila pays corporate taxes. the girm has a debt equity ratio of 1. the pre tax cost

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sheila pays corporate taxes. the girm has a debt equity ratio of 1. the pre tax cost of debt if 1.5% while the unlevered cost of capital is 10%. what is the approximate cost of equity if the tax rate is 35%?

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Applied Corporate Finance

ISBN: 978-1118808931

4th edition

Authors: Aswath Damodaran

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Posted Date: Apr 03, 2024 07:06 AM

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sheila pays corporate taxes. the girm has a debt equity ratio of 1. the pre tax cost

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To calculate the approximate cost of equity we can use the ModiglianiMiller MM proposition which rel... View the full answer

Applied Corporate Finance

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