Question: Self-Study Problem 13.05 ou are analyzing a firm that is financed with 55 percent debt and 40 percent equity. The current cost of debt financing

 Self-Study Problem 13.05 ou are analyzing a firm that is financed

Self-Study Problem 13.05 ou are analyzing a firm that is financed with 55 percent debt and 40 percent equity. The current cost of debt financing is 8 percent, but due to a recent downgrade by the rating agencies, the firm's cost of debt is expected to increase to 9 percent immediately How wll ls Increase change the frm's weighted average co of capital if you lgnore taxest (Round answer to 2 decimal places, e 15.25%.) Ignoring taxes firm's weighted average cost of capital witl If you consider taxes and the firm is subject to a 30 percent marginal tax rate? (Round answer to 3 decimal places, e.g. 15.250%.) Considering taxes firm's weighted average cost of capital will Click if you would like to Show Work for this question: increase by by

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