Multiple Choice
A firm's return on assets is 12 percent and the cost of the firm's debt is 7 percent.Given a 0.7 debt-equity-ratio, what is the levered cost of equity? Assume that there are no taxes.
A) 7 percent
B) 12 percent
C) 13.6 percent
D) 15.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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