Multiple Choice
If a firm is unlevered and has a cost of equity capital of 13.7 percent,what would be the cost of equity if its debt-equity ratio was revised to .4? The expected cost of debt is 7.4 percent and there are no taxes.
A) 15.54 percent
B) 15.67 percent
C) 16.09 percent
D) 16.22 percent
E) 16.36 percent
Correct Answer:
Verified
Correct Answer:
Verified
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