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Capital change if capital structure changed

Question 1: How would the cost of capital change if the capital structure changed.

Question 2: If the company needs a split of 25% debt to 75% equity to have an optimal capital structure, would that be optimal.

Question 3: What would happen to the cost of capital if it is not optimal and the firm moves to optimal.

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Finance Basics: Capital change if capital structure changed

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Finance Basics: Capital change if capital structure changed

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