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    Fundamentals of Corporate Finance Study Set 13
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    Exam 16: Capital Structure
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    A Firm Has a Market Value of Assets of $50
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A Firm Has a Market Value of Assets of $50

Question 8

Question 8

Multiple Choice

A firm has a market value of assets of $50 000. It borrows $10 000 at 7%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?


A) 18%
B) 19%
C) 16%
D) 17%

Correct Answer:

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