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Calculate the Company's Cost of Equity Given the Following Information

Question 78

Multiple Choice

Calculate the company's cost of equity given the following information: return on assets 10.50%; return on debt 8.75%; total debt $995,000; total equity $1,520,000.


A) 8.65%
B) 9.65%
C) 10.65%
D) 11.65%
E) 12.65%

Correct Answer:

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