Gamer Co. has no debt. Its cost of capital is 10.5 percent. Suppose the company converts...

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Gamer Co. has no debt. Its cost of capital is 10.5 percent. Suppose the company converts to a debt-equity ratio of 1. The int

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Answer 1

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Cost of equity: Re = Ra +(Ra-Rd)(D/E)(1-t) Ra = unlevered cost of equity = 13.40% 0.105+((0.105-0.076)*(1)*1) WACC: Particula

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