Navare Ltd required return on its common stock is 8%. The market return is 7%, the...

Navare Ltd required return on its common stock is 8%. The market return is 7%, the T-bill is returning 296, the company's Beta is 1.2 and its marginal tax rate is 25%. Navare's is financed with 40% Debt and 60 % Equity. Use the Hamada equation to find the company's required return if management changes it's financing to 30% debt and 70% equity.

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jeff jeffy answered 2 years ago

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