Multiple Choice
A firm has total debt of $900 and total equity of $1,600. The cost of debt is 10% and the unlevered rate of return is 13%. The tax rate is 34%. What is the cost of equity?
A) 12.29%
B) 12.69%
C) 13.88%
D) 14.11%
E) 14.69%
Correct Answer:
Verified
Correct Answer:
Verified
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