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Wilt's Has a Debt-Equity Ratio of 0

Question 37

Multiple Choice

Wilt's has a debt-equity ratio of 0.48,a pretax cost of debt of 7.3 percent,and an unlevered cost of capital of 14.1 percent.What is its levered cost of equity if there are no taxes or other imperfections?


A) 19.65%
B) 15.55%
C) 18.20%
D) 17.36%
E) 16.45%

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