2009-03-29_010359_change_in_capital_structure

2009-03-29_010359_change_in_capital_structure - mil debt....

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Existing WACC = We * Re + Wd*Rd = .70 *16 + .30*8 = 11.2 + 2.4 = 13.6% With the issue of new stock the capital structure becomes 80 mil common stock and 20
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Unformatted text preview: mil debt. WACC = We * Re + Wd*Rd 13.6% = .80 *Re + .20*8 Re = 14%...
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