Wako and Sons Inc. has no debt, a WACC of 14% and a tax rate of 40%.

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Wako and Sons Inc. has no debt, a WACC of 14% and a tax rate of 40%. If the company chooses to change its capital structure to a debt equity ratio of 40% (D/E=0.4), what is the new cost of equity RE?

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Posted Date: May 17, 2023 03:38 AM

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Wako and Sons Inc. has no debt, a WACC of 14% and a tax rate of 40%.

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Corporate Finance

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