Multiple Choice
Rosita's has a cost of equity of 13.76 percent and a pretax cost of debt of 8.5 percent.The debt-equity ratio is .60 and the tax rate is 21 percent.What is Rosita's unlevered cost of capital?
A) 11.83 percent
B) 12.07 percent
C) 13.97 percent
D) 14.08 percent
E) 14.60 percent
Correct Answer:
Verified
Correct Answer:
Verified
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