Multiple Choice
Your firm has a debt-equity ratio of .75. Your pre-tax cost of debt is 8.5% and your required return on assets is 15%. What is your cost of equity if you ignore taxes?
A) 11.25%
B) 12.21%
C) 16.67%
D) 19.88%
E) 21.38%
Correct Answer:
Verified
Correct Answer:
Verified
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