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Calculate the Cost of Equity Capital from the Following Data

Question 52

Multiple Choice

Calculate the cost of equity capital from the following data: cost of debt = 12%,D = $0.2 million,E = $0.3 million,and the increment for financial risk = 4%.


A) 16.8%
B) 14.8%
C) 18.7%
D) 15.2%

Correct Answer:

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