Question: please help with question Remex (RMX) currently has no debt in its capital structure. The beta of its equity is 1.26 1.26 . For each

please help with questionRemex (RMX) currently has no debt in its

please help with questionRemex (RMX) currently has no debt in its capital structure. The beta of its equity is 1.26

1.26. For each year into the indefinite future, Remex's free cash flow is expected to equal $24

24 million. Remex is considering changing its capital structure by issuing debt and using the proceeds to buy back stock. It will do so in such a way that it will have a 33

33% debt-equity ratio after the change, and it will maintain this debt-equity ratio forever. Assume that Remex's debt cost of capital will be 6.37 %.

6.37%

capital structure. The beta of its equity is 1.26 1.26. For each

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