A public traded company has a debt-equity ratio of 0.6 .Its cost of debt after tax is

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A public traded company has a debt-equity ratio of 0.6 .Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for the company would be if its target capital structure were 50% debt and 50% equity?

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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Posted Date: Mar 09, 2024 06:22 AM

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A public traded company has a debt-equity ratio of 0.6 .Its cost of debt after tax is

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ANSWER IS To find the cost of equity for the company when its target capital structure is 50 debt an... View the full answer

Intermediate Accounting

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