Assuming that Tesla would like to issue $4 billion additional in debt and use the proceeds to
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Question:
Assuming that Tesla would like to issue $4 billion additional in debt and use the proceeds to repurchase some of their equity, how would their WACC change assuming the YTM on the debt does not change and the required rate of return does not change.
Why is this assumption (that the rates would not change) likely not appropriate, and what would be a more appropriate assumption?
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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