Multiple Choice
The Green Paddle has a cost of equity of 12.1 percent and a pre-tax cost of debt of 7.6 percent.The debt-equity ratio is 0.65 and the tax rate is 32 percent.What is Green Paddle's unlevered cost of capital?
A) 10.72 percent
B) 11.85 percent
C) 14.29 percent
D) 14.46 percent
E) 15.08 percent
Correct Answer:
Verified
Correct Answer:
Verified
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