Home / Questions / If a firms’ capital structure consists of 40% debt, and 70% Equity, while the cost of debt...
If a firms’ capital structure consists of 40% debt, and 70% Equity, while the cost of debt = 6%, and the cost of equity = 10%
Assuming that the firm is tax free, what is the weighted a average cost of capital?
According to the Modigliani – Miller theorem, what are the implications of changes in the firm’s capital structure for stockholder’s wealth?
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