Multiple Choice
Wild Flowers Express has a debt-equity ratio of .60. The pre-tax cost of debt is 9% while the unlevered cost of capital is 14%. What is the cost of equity if the tax rate is 34%?
A) 7.52%
B) 8.78%
C) 15.98%
D) 16.83%
E) 17.30%
Correct Answer:
Verified
Correct Answer:
Verified
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