What will Apple cost of equity be after share repurchase

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Question - Apple Industries is currently an all-equity firm that pays no taxes. The market value of the firm's equity is £1,500,000. The cost of the unlevered equity is 10% per annum. Exeter plans to issue £500,000 in debt and use the proceeds to repurchase shares. The cost of debt is 6% per annum. What will Apple's cost of equity be after the share repurchase?

Reference no: EM132834480

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