Business, 29.11.2019 01:31 jesussalido123

Company xyz has a target capital structure of 50% equity and 50% debt. its cost of equity is 6%, and cost of debt is 8% what would happen to xyz's wacc if its capital structure were to shift to 75% equity and 25% debt? assume a tax rate is40%.

a. wacc decrease
b. wacc increases
c. wacc remains constant

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Company xyz has a target capital structure of 50% equity and 50% debt. its cost of equity is 6%, and...

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