Modigliani and? milles world of no taxes

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Modigliani and? Miller's world of no taxes. Roxy? Broadcasting, Inc. is currently a? low-levered firm with a? debt-to-equity ratio of 1?/4. The company wants to increase its leverage to 4?/1 for debt to equity. If the current return on assets is 11?% and the cost of debt is 9?%, then

a. What are the current costs of equity if Roxy operates in a world of no? taxes? Round to nearest whole percent.

b. What are the new costs of equity if Roxy operates in a world of no? taxes? Round to the nearest whole percent.

Reference no: EM133205857

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