Multiple Choice
A firm has a debt-to-equity ratio of .60. Its cost of debt is 8%. Its overall cost of capital is 12%. What is its cost of equity if there are no taxes or other imperfections?
A) 10.0%
B) 13.5%
C) 14.4%
D) 18.0%
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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