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DIY Inc. is unlevered and valued at $618,817. It is currently deciding whether issuing $335,942 in...

DIY Inc. is unlevered and valued at $618,817. It is currently deciding whether issuing $335,942 in new debt with an 0.05 interest rate. The current of cost of equity is 0.111. DIY would repurchase stocks with the proceeds of the debt issue. There are currently 344,573 shares outstanding and their effective marginal tax bracket is 0.36. What will DIY's new WACC be?

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IF ANY QUERY, FEEL FREE TO ASK THEM AND GET RESOLVED Solution 1 Calculate cost of equity (Levered) Debt Equity 335942 282875

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