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Business, 23.12.2019 20:31 kyleg1711

The present value of interest tax shields on this debt is $76,000. 7. wacc whispering pines, inc., is all-equity-financed. the expected rate of return on the company’s shares is 12%. a. what is the opportunity cost of capital for an average-risk whispering pines investment? b. suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (d/v = .30). what will be the company’s weighted-average cost of capital at the new capital structure? the borrowing rate is 7.5% and the tax rate is 35%.

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The present value of interest tax shields on this debt is $76,000. 7. wacc whispering pines, inc., i...
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