What is firms overall cost of capital and wacc

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RM is an all-equity firm, value of equity is $2 million. Cost of unlevered equity is 18%. It plans to issue $400,000 debt and use the proceeds to repurchase stock. Cost of debt is 10%.

- After the repurchase, what is firms overall cost of capital, WACC?

- After the repurchase, what is the cost of equity?

Reference no: EM131826624

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