Winter's Toyland Has a Debt-Equity Ratio of

Multiple Choice

Winter's Toyland has a debt-equity ratio of .57. The pretax cost of debt is 8.2 percent and the required return on assets is 14.7 percent. What is the company's cost of equity if you ignore taxes?

A) 14.70 percent
B) 19.74 percent
C) 15.29 percent
D) 17.46 percent
E) 18.41 percent