What will the firms required return on equity be if the


A firm has a Beta of 1.2 on its equity. It currently has a capital structure that is 20% debt and 80% equity. If the risk free rate of return is 3%, the expected return on the market is 12%, and the tax rate is 35%, what will the firms required return on equity be if the change to a capital structure that is 40% debt and 60% equity?

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Financial Management: What will the firms required return on equity be if the
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