Question: i need help asap please NatNah, a debt has no debt and an equity cost of capital of 15% Suppose Natah decides to increase i
i need help asap please
NatNah, a debt has no debt and an equity cost of capital of 15% Suppose Natah decides to increase i its leverage and maintain a market ratio of 0 5 Suppose its debt cost of capital is 6% and its after lax) WACC be with the increase in keverage? (Hint Whike the pretax WACC remains the same, the equity cost of capital increases when lower cost debt is added to the capital structure However, you will not need to recalculate the equity cost of capital since the overall pretax WACC is assumed to remain constant even after the addition of debt) The effective after-tax WACC wil be% (Round to two decimal places)
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