Multiple Choice
A firm has a market value of assets of $50,000.It borrows $10,000 at 5%.If the unlevered cost of equity is 15%,what is the firm's cost of equity capital?
A) 15%
B) 17.5%
C) 18.5%
D) 19.2%
E) 20.6%
Correct Answer:
Verified
Correct Answer:
Verified
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