Multiple Choice
Fuji Inc.is registered as a business in the film-making industry and has a required return on its assets of 12%.It can borrow in the debt market at 6%.If there are no taxes and M&M's proposition II holds,what is the cost of equity if there is 100% equity financing?
A) 12%
B) 13%
C) 14%
D) 15%
Correct Answer:
Verified
Correct Answer:
Verified
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