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

Question 77

Multiple Choice

Calculate the company's cost of equity given the following information: return on assets 13.25%; return on debt 8.25%; total debt $525,000; total equity $775,000.


A) 17.74%
B) 16.64%
C) 15.54%
D) 14.44%
E) 13.34%

Correct Answer:

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