Multiple Choice
Exley's Farms has a debt-equity ratio of.75. The cost of equity is 15% and the after-tax cost of debt is 5.4%. What will the firm's cost of equity be if the debt-equity ratio is revised to.60?
A) 10.89%
B) 11.47%
C) 11.70%
D) 13.89%
E) 14.18%
Correct Answer:
Verified
Correct Answer:
Verified
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