Gamer co has no debt its cost of capital is 104 percent, Ask an Expert

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Gamer Co. has no debt. Its cost of capital is 10.4 percent. Suppose the company converts to a debt–equity ratio of 1. The interest rate on the debt is 7.5 percent. Ignore taxes for this problem. What is the company’s new cost of equity? What is WACC?

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Financial Management, Finance

Category:- Financial Management
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