Is the decision to raise approximately million to finance

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Reference no: EM132776124

Problem 1: Is the decision to raise approximately $20 million to finance the new division exclusively using new equity likely to affect HK's WACC? Explain why or why not in terms of financial leverage, component costs, and capital structure. What is the likely impact?

Problem 2: What is the current market price of each $100 face value bond of HK's long-term debt issue? Round your final answer to two decimal places.

Reference no: EM132776124

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