Question: Daniel Electronics is considering a change in its target capital structure, which currently consists of 35% debt and 65% equity. The CFO believes the firm

Daniel Electronics is considering a change in its target capital structure, which currently consists of 35% debt and 65% equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, rRF, is 5.0%, the market risk premium, RPM, is 6.0%, and the firm

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