Solved: Assuming there are no taxes and hubbards debt is risk-free, Business Economics

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Assuming there are no taxes and hubbards debt is risk-free

Hubbard Industries is an? all-equity firm whose shares have an expected return of 9.9%

Hubbard does a leveraged? recapitalization, issuing debt and repurchasing? stock, until its? debt-equity ratio is 0.54

Due to the increased? risk, shareholders now expect a return of 14.5 %

Assuming there are no taxes and? Hubbard's debt is? risk-free, what is the interest rate on the? debt?

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Business Economics: Assuming there are no taxes and hubbards debt is risk-free

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