Pippirsquos puppies inc has an unlevered beta of 080 the


Pippi’s Puppies Inc. has an unlevered beta of 0.80. The firm currently has no debt, but is considering changing its capital structure to be 30% debt and 70% equity. Its corporate tax rate is 30%, rRF = 4% and the market risk premium is 5%. What is the company’s new cost of equity? Please show work.

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Financial Management: Pippirsquos puppies inc has an unlevered beta of 080 the
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