Extremely large debt components in capital structure

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Reference no: EM131914241

1. Why is it not common to see firms with extremely large debt components in their capital structure?

2. A firm’s WACC is 19%, its required return on equity is 23%, and its after-tax cost of debt (i.e., effective cost after tax deductions) is 6%. What proportion of the firm’s capital structure is debt, and what proportion is equity?

3. How many Euros can you get for $2500 given the following exchange rates? Country US $ Equivalent Currency Per US $ Euro 1.0606 .9426 a. 2.306 Euro b. 2.357 Euro c. 2.451 Euro d. 2.652 Euro e. 2.675 Euro f. 29 Euros.

Reference no: EM131914241

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