The border crossing has no debt and a cost of capital of


The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The border crossing has no debt and a cost of capital of
Reference No:- TGS01395074

Expected delivery within 24 Hours