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Business, 20.08.2021 22:00 george27212

A firm expects its EBIT to be $167,000 every year, in perpetuity. The company is currently unlevered with a cost of equity of 17%. It faces a tax rate of 23%. The firm plans to borrow $175,000 and use the proceeds to repurchase shares. If the firm's cost of borrowing is 10%, what is its WACC after the recapitalization

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A firm expects its EBIT to be $167,000 every year, in perpetuity. The company is currently unlevered...

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