Multiple Choice
Alabaster Incorporated has a beta of 1.05,a cost of debt of 8% and a debt to value ratio of .7. The current risk free rate is 3% and the market rate of return is 12.5%. What is the company's cost of equity capital?
A) 8.13%
B) 10.25%
C) 12.97%
D) 13.13%
E) 16.13%
Correct Answer:
Verified
Correct Answer:
Verified
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