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Harnsberger Products has a target debt/equity rati...

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Harnsberger Products has a target debt/equity ratio of 0.75. The firm has a corporate tax rate of 33.333 percent, and a weighted average cost of capital of 10 percent. Assuming that (a) the cost of equity capital is 14 percent, determine the Harnsberger's pre-tax cost of debt, (b) the pre-tax cost of debt is 5.25 percent, determine Harnsberger's cost of equity capital,use this document as a reference

 

Paper#5191 | Written in 18-Jul-2015

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