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Regional Fleet Sales Has a Pretax Cost of Debt of 7.30

Question 44

Multiple Choice

Regional Fleet Sales has a pretax cost of debt of 7.30 percent and a return on assets of 20.5 percent.The debt-equity ratio is .46.Ignore taxes.What is the cost of equity?


A) 25.74 percent
B) 26.06 percent
C) 26.71 percent
D) 26.22 percent
E) 26.57 percent

Correct Answer:

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