Multiple Choice
A firm has a debt-equity ratio of .64,a pretax cost of debt of 8.5 percent,and a required return on assets of 12.6 percent.What is the cost of equity if you ignore taxes?
A) 8.06 percent
B) 8.55 percent
C) 11.12 percent
D) 15.22 percent
E) 16.38 percent
Correct Answer:
Verified
Correct Answer:
Verified
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