Canyon Drilling, Inc. has just come under new management. One of the first things the...
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Canyon Drilling, Inc. has just come under new management. One of the first things the new management wants to accomplish is to identify its capital structure and the cost of additional funding, if needed.
According to the accounting department, the current balance sheet is accurate and reflects the financial structure of the company. They have also calculated the marginal tax rate to be The companys beta is currently
Your Chief Financial Officer, Marge, has also provided you the following information about the market and the companys financials:
Assuming the same capital structure is to be maintained, what is the optimal capital structure for Canyon Drilling?
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