Multiple Choice
Flyover Airlines Inc.has a cost of equity equal to 24.67%.If the firm is financed with 40% debt and 60% equity and has an average cost of capital of 18%,what is the cost of debt? Assume perfect capital markets.
A) 8.00%
B) 6.67%
C) 10.00%
D) 12.33%
Correct Answer:
Verified
Correct Answer:
Verified
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