a
firm has total debt of $900 an total equity of $1600. the cost of
debt is...
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Finance
afirm has total debt of $900 an total equity of $1600. the cost ofdebt is 10% and the unlevered rate of return is 13%. The tax rateis 34%. What is the cost equity?
A) 14.69%
B)14.11%
C) 13.88%
D)12.29%
E) 12.69%
Answer & Explanation
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Solution The formula for calculating the Cost of equity capital is Ke Ru Ru Kd 1 t DE Where Ke Cost of
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