Multiple Choice
A firm has an equity multiplier of 1.57,an unlevered cost of equity of 14 percent,a levered cost of equity of 15.6 percent,and a tax rate of 21 percent.What is the cost of debt?
A) 11.25 percent
B) 10.50 percent
C) 10.45 percent
D) 11.00 percent
E) 10.33 percent
Correct Answer:
Verified
Correct Answer:
Verified
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