Solved

A Firm Has a Debt-To-Equity Ratio of 0

Question 14

Multiple Choice

A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 10 percent. Its overall cost of capital is 14 percent. What is its cost of equity if there are no taxes?


A) 13 percent
B) 16 percent
C) 15 percent
D) 18 percent

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions