Multiple Choice
LP Gas has a cost of equity of 16.31 percent and a pretax cost of debt of 7.8 percent. The debt-equity ratio is .56 and the tax rate is 21 percent. What is the unlevered cost of capital?
A) 13.70 percent
B) 13.85 percent
C) 14.01 percent
D) 14.26 percent
E) 14.08 percent
Correct Answer:
Verified
Correct Answer:
Verified
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