Multiple Choice
The Tree House has a pretax cost of debt of 7.3 percent and a return on assets of 12.8 percent.The debt-equity ratio is .46.Ignore taxes.What is the cost of equity?
A) 14.50 percent
B) 14.82 percent
C) 15.47 percent
D) 14.98 percent
E) 15.33 percent
Correct Answer:
Verified
Correct Answer:
Verified
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