I WILL VOTE!!! Bliss Corporation has a target capital structure with...
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Accounting
I WILL VOTE!!!
Bliss Corporation has a target capital structure with debt of 55,56% (the debt-equity ratio is 1.25). Its WACC IS 8.3 percent, and its cost of debt is 5.1 percent. The corporate tax rate is 21 percent Instructions: 1. What is the company's cost of equity capital? (5 points) 2. What is the company's unlevered cost of equity capital? (5 points) 3. What would the cost of equity be if the debt-equity ratio were 2? What if it were 1? What if it were zero? (5 points) 4. Explain how to determine the optimal capital structure. (5 points)
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