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Your CFO tells you to analyze the capital structure of the company. You do so, using all available data, and find that the "target" ratio of debt to equity in the company is 22%/78%. Given the current Beta value for the company, you do an detailed analysis and find that the company's WACC could be lowered, if you move to a 30%/70% capital structure. The reason this makes sense to you to do so, if you can convince your CFO, is:

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91787551

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