Multiple Choice
Jungle,Inc.has a target debt-equity ratio of 0.72.Its WACC is 11.5 percent and the tax rate is 34 percent.What is the cost of equity if the aftertax cost of debt is 5.5 percent?
A) 13.75 percent
B) 13.84 percent
C) 14.41 percent
D) 14.79 percent
E) 15.82 percent
Correct Answer:
Verified
Correct Answer:
Verified
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