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Category > Business & Finance Posted 29 Jul 2017 My Price 6.00

1. Shows a simplified balance sheet for Rensselaer Felt.

1. Shows a simplified balance sheet for Rensselaer Felt. Calculate this company’s weighted-average cost of capital. The debt has just been refinanced at an interest rate of 6% (short term) and 8% (long term). The expected rate of return on the company’s shares is 15%. There are 7.46 million shares outstanding, and the shares are trading at $46. The tax rate is 35%.

2. How will Rensselaer Felt’s WACC and cost of equity change if it issues $50 million in new equity and uses the proceeds to retire long-term debt? Assume the company’s borrowing rates are unchanged. Use the three-step procedure

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Status NEW Posted 29 Jul 2017 03:07 PM My Price 6.00

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