Multiple Choice
The Woodworker has a pretax cost of debt of 6.25 percent and a return on assets of 15.5 percent.The debt-equity ratio is .41.Ignore taxes.What is the cost of equity?
A) 18.46 percent
B) 18.78 percent
C) 19.43 percent
D) 18.94 percent
E) 19.29 percent
Correct Answer:
Verified
Correct Answer:
Verified
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