NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 17%.
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NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 17%. NatNah decides to increase its leverage to maintain a market debt-to-value ratio of 0.4. Suppose its debt cost of capital is 7% and its corporate tax rate is 33%. If NatNah’s pretax WACC remains constant, what will be its (effective after-tax) WACC with the increase in leverage?
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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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