Multiple Choice
Your firm has a debt-equity ratio of .60. Your pre-tax cost of debt is 9% and your required return on assets is 14%. What is your cost of equity if you ignore taxes?
A) 16.4%
B) 16.7%
C) 17.0%
D) 17.3%
E) 17.5%
Correct Answer:
Verified
Correct Answer:
Verified
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