Gallagher group has a debtequity ratio of 12 the firm has a, Ask an Expert

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Gallagher Group has a debt/equity ratio of 1.2. The firm has a cost of equity of 12% and a cost of debt of 8%. What will the cost of equity be if the target debt/equity ratio increases to 2.0 and the cost of debt does not change? Ignore taxes and bankruptcy costs.

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Financial Management, Finance

Category:- Financial Management
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