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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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Kunitz Co. has no debt. Its cost of capital is 9.8 percent. Suppose Kunitz converts to a debt-equity ratio of 1. The interest rate on the debt is 6.9 percent. Ignore taxes for this problem. |
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| Requirement 1: |
|
What is the company’s new cost of equity? (Do not round intermediate calculations. Enter youd answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
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| Cost of equity | % |
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| Requirement 2: |
|
What is its new WACC? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Â
| WACC | %Â |
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