Gamer co has no debt its cost of capital is 104 percent


Gamer Co. has no debt. Its cost of capital is 10.4 percent. Suppose the company converts to a debt–equity ratio of 1. The interest rate on the debt is 7.5 percent. Ignore taxes for this problem. What is the company’s new cost of equity? What is WACC?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Gamer co has no debt its cost of capital is 104 percent
Reference No:- TGS02153811

Expected delivery within 24 Hours