The border crossing has no debt and a cost of capital of
The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.
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the border crossing has no debt and a cost of capital of 112 percent assume the firm switches to a debt-to-equity ratio
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