Multiple Choice
The Doll House has a pre-tax cost of debt of 7.9 percent and a return on assets of 11.7 percent. The debt-equity ratio 0.45. Ignore taxes. What is the cost of equity?
A) 11.87 percent
B) 12.03 percent
C) 12.47 percent
D) 12.98 percent
E) 13.41 percent
Correct Answer:
Verified
Correct Answer:
Verified
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