Today, a firm's cost of capital (COC) = 12%, its debt's COC = 4%, and its equity's
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Today, a firm's cost of capital (COC) = 12%, its debt's COC = 4%, and its equity's COC = 20%. Its debt ratio = 50%. Tomorrow, the firm wants to increase its debt ratio from SO% to 80%, can you provide plausible (reasonable) COC for its debt and equity afterwards?
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
ISBN: 978-1118630914
1st edition
Authors: Robert A.Weigand
Posted Date: