The cost of debt is 7 and the tax rate is 25 what is the


A firm wants to buy a machine that is expected to yield 12%. It plans to finance it with 50% Debt and the rest Equity, so there is no preferred stock. The cost of Debt is 7% and the tax rate is 25%. What is the expected return for the shareholders?

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Financial Management: The cost of debt is 7 and the tax rate is 25 what is the
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