Business
Business, 14.04.2020 18:08, zmerriweather167

Bruce & Co. expects its EBIT to be $165,000 every year forever. The company currently has no debt but can borrow at 8.6 percent while its cost of equity is 14.7 percent. The tax rate is 21 percent. The company is planning to borrow $55,000 and use the loan proceeds to repurchase shares. What will be the WACC after recapitalization? Multiple Choice 15.07 percent 14.11 percent 14.51 percent 14.58 percent 14.57 percent

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Bruce & Co. expects its EBIT to be $165,000 every year forever. The company currently has no deb...

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