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Lyrx [107]
3 years ago
8

_ are loans to a conpany or government for a set amount of time they Earn interest and are considered a low- risk invest

Business
1 answer:
Arisa [49]3 years ago
7 0

Answer:

bonds

Explanation:

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The required return on equity for an all-equity firm is 10.0 percent. They are considering a change in capital structure to a de
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Answer:

The new cost of capital if this firm changes capital structure is 1.3

Explanation:

From the provided information:

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New D/E ratio = 0.5

Then, the new capital structure with levered beta is given by:

new capital structure  = All equity beta *(1 + D/E*(1 - tax rate))

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