Morales publishing tax rate is 40 its beta is 110 and it, Ask an Expert

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Morales publishing tax rate is 40% its beta is 1.10 and it uses no debt. However the CFO is considering moving to a capital structure with 30% debt and 70% equity. If the risk free rate is 5.0 and the market risk premium is 6.0 by how much would the capital structure shift change the firms cost of equity?

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Category:- Financial Management
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