A company has no debt in its capital structure. Its cost of capital is 10%. The company

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A company has no debt in its capital structure. Its cost of capital is 10%. The company is considering a new capital structure with 60% debt (debt / value of the firm). The cost of debt would be 8%. Assuming there are no taxes.

What would the cost of equity be with the new capital structure?

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Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Posted Date: Jun 12, 2023 05:42 AM

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A company has no debt in its capital structure. Its cost of capital is 10%. The company

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Intermediate Financial Management

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