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Business, 09.12.2019 20:31 cooljazzy1234

Gulf coast tours currently has a weighted average cost of capital of 12.4 percent based on a combination of debt and equity financing. the firm has no preferred stock. the current debt-equity ratio is .47 and the aftertax cost of debt is 6.1 percent. the company just hired a new president who is considering eliminating all debt financing. all else constant, what will the firm's cost of capital be if the firm switches to an all-equity firm

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