Multiple Choice
A firm has a debt-to-equity ratio of 1.20. If it had no debt,its cost of equity would be 15%. Its cost of debt is 10%. What is its cost of equity if there are no taxes or other imperfections?
A) 10%
B) 15%
C) 18%
D) 21%
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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