SSU is currently a levered firm with a debt-equity ratio of 0.35 and a pretax cost of debt of 6.2%. The firm has a cost
Posted: Mon Apr 25, 2022 8:43 am
SSU is currently a levered firm with a debt-equity ratio of 0.35
and a pretax cost of debt of 6.2%. The firm has a cost of equity of
12.60%. The firm is considering switching to an all equity firm.
What will the firm's cost of equity be if it makes the switch?
Ignore taxes.
and a pretax cost of debt of 6.2%. The firm has a cost of equity of
12.60%. The firm is considering switching to an all equity firm.
What will the firm's cost of equity be if it makes the switch?
Ignore taxes.