A firm currently has 40 worth of debt at ytm5 60 worth of


A firm currently has $40 worth of debt at YTM=5%, $60 worth of equity with cost of equity (RE) equal to 15%. What would be the cost of equity if the firm changed its capital structure to all equity? The tax rate is zero.

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Financial Management: A firm currently has 40 worth of debt at ytm5 60 worth of
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