Multiple Choice
A firm has a debt-to-equity ratio of .45 and a pretax cost of debt of 8 percent.The firm's WACC is 12.68 percent.What is the levered cost of equity if there are no taxes or other imperfections?
A) 10.57%
B) 13.58%
C) 14.79%
D) 18.03%
E) 16.67%
Correct Answer:
Verified
Correct Answer:
Verified
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