Multiple Choice
A firm has a debt-equity ratio of .40, a WACC of 16%, and a yield-to-maturity on its debt of 13%. Ignoring taxes, what is the cost of equity?
A) 7.8%
B) 9.6%
C) 11.8%
D) 15.2%
E) 17.2%
Correct Answer:
Verified
Correct Answer:
Verified
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