Multiple Choice
The Border Cafe has a cost of equity of 13.2 percent and a pretax cost of debt of 7.5 percent.The debt-equity ratio is 0.6 and the tax rate is 35 percent.What is the unlevered cost of capital?
A) 11.60%
B) 12.30%
C) 11.97%
D) 12.08%
E) 10.80%
Correct Answer:
Verified
Correct Answer:
Verified
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