Multiple Choice
If a firm is unlevered and has a cost of equity capital 12%, what would its cost of equity be if its debt-equity ratio became 2? The expected cost of debt is 8%.
A) 14.0%
B) 14.67%
C) 16.0%
D) 20.0%
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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