Multiple Choice
A firm has a debt-to-equity ratio of .62.Its pretax cost of debt is 7.1 percent and its unlevered cost of capital is 13.8 percent.What is its levered cost of equity if there are no taxes or other imperfections?
A) 9.65%
B) 15.55%
C) 18.20%
D) 17.95%
E) 20.45%
Correct Answer:
Verified
Correct Answer:
Verified
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