Multiple Choice
Your firm has a debt-equity ratio of .60. Your pre-tax cost of debt is 6.0% and your required return on assets is 12%. What is your cost of equity if you ignore taxes?
A) 9.00%
B) 12.00%
C) 14.50%
D) 15.60%
E) 16.10%
Correct Answer:
Verified
Correct Answer:
Verified
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