Question: please answer the second question Problem 1. Arc Levers is financed by a mixture of debt and equity. You have the following information about its

please answer the second question

Problem 1. Arc Levers is financed by a mixture of debt and equity. You have the following information about its cost of capital. (a) Please fill in the blanks. (b) Suppose now that Arc repurchases debt and issues equity so that D/V=0.3. This reduced borrowing causes rD to fall to 11%. How do the other variables change

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