Multiple Choice
A firm has a debt-equity ratio of 1,a cost of equity of 16 percent,and a cost of debt of 8 percent.If there are no taxes or other imperfections,what is its unlevered cost of equity?
A) 8 percent
B) 10 percent
C) 12 percent
D) 14 percent
E) 16 percent
Correct Answer:
Verified
Correct Answer:
Verified
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