Multiple Choice
Winter's Toyland has a debt-equity ratio of 0.65.The pre-tax cost of debt is 8.7 percent and the required return on assets is 16.1 percent.What is the cost of equity if you ignore taxes?
A) 19.31 percent
B) 19.74 percent
C) 20.29 percent
D) 20.46 percent
E) 20.91 percent
Correct Answer:
Verified
Correct Answer:
Verified
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