An all equity firm has a cost of capital of 15 percent the
An all equity firm has a cost of capital of 15 percent. The firm is considering switching to a debt-equity ratio of .65 with a pretax cost of debt of 7.5 percent. What will the firm's cost of equity be if the firm makes the switch? Ignore taxes.
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an all equity firm has a cost of capital of 15 percent the firm is considering switching to a debt-equity ratio of 65
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