ww . c) Suppose a firm's weighted average cost of capital or WACC has the...
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ww . c) Suppose a firm's weighted average cost of capital or WACC has the following components: Equity = $20,000,000; Debt = $20,000,000; id = 0.10 or 10% Tcorp = 0.25 or 25% . i) Solve for the WACC using the above data if is = 10%. Show your work. ii) If beta (B) increased for this business, explain how the WACC would change holding all else constant and why it would change that direction
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