At the optimal debt to capital ratio of 50 rad has an
At the optimal debt to capital ratio of 50%, RAD has an interest coverage ratio of 2.198.Estimate the cost of capital at the optimal debt ratio. (You can still use that the current regression beta of 2.1 to arrive at the new beta)
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rad has 91618 million shares outstanding today trading at 667 per share assuming that the book value of debt on its
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at the optimal debt to capital ratio of 50 rad has an interest coverage ratio of 2198estimate the cost of capital at
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