What will the firm''s cost of capital, Accounting Basics

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What will the firm''s cost of capital

Albright and Company currently has a weighted average cost of capital of 8.6 percent based on a combination of debt and equity financing. The current peercentage debt 0.6 and the aftertax cost of debt is 6.6 percent. The company just hired a new president who is considering eliminating all debt financing. All else constant, what will the firm's cost of capital be if the firm switches to being an all-equity firm?

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