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    BK Inc Has a Cost of Debt of 10% and a a WACC
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BK Inc Has a Cost of Debt of 10% and a a WACC

Question 116

Question 116

Multiple Choice

BK Inc. has a cost of debt of 10% and a WACC of 15%. The debt-equity ratio is.6. The tax rate is 35%. What is the cost of equity?


A) 19.33%
B) 19.88%
C) 20.10%
D) 20.54%
E) 20.67%

Correct Answer:

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