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Business, 31.03.2020 05:01 Circe7527

Suppose the debt ratio is 50%, the interest rate on new debt is 8%, the current cost of equity is 16%, and the tax rate is 40%. An increase in the debt ratio to 60% would have to decrease the weighted average cost of capital (WACC).

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Suppose the debt ratio is 50%, the interest rate on new debt is 8%, the current cost of equity is 16...
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