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Business, 06.05.2020 17:01 faithtunison

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of 1.19. The cost of equity is 12.4 percent and the pretax cost of debt is 7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent?

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Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of 1.19....
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