Multiple Choice
What is its cost of equity for a firm if the corporate tax rate is 30%? The firm has a debt-to-equity ratio of 1.5.If it had no debt, its cost of equity would be 16%.Its current cost of debt is 12%.
A) 17.4%
B) 18.4%
C) 20.2%
D) 21.4%
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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