Solved: Mm gamer co has no debt its cost of capital is 94 percent, Finance Basics

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Mm gamer co has no debt its cost of capital is 94 percent

Question: M&M. Gamer Co. has no debt. Its cost of capital is 9.4 percent. Suppose the company converts to a debt-equity ratio of 1.0. The interest rate on the debt is 6.1 percent. Ignoring taxes, what is the company's new cost of equity? What is its new WACC?

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