What will be cost of equity after the switch

Reference no: EM131948580

Question: The Border Crossing has no debt and a cost of capital of 11.2 percent. Assume the firm switches to a debt-to-equity ratio of .25 and issues bonds at par with a 6.3 percent coupon. What will be its cost of equity after the switch? Ignore taxes. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131948580

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