Use the Following Information to Answer the Question(s)below

question 44

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-If Galt's debt cost of capital is 6%,then Galt's equity cost of capital is closest to:

• A)11.2%.
• B)12.0%.
• C)14.8%.
• D)15.5%.

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Definitions:

Ventricles

Hollow structures within the brain that produce and contain cerebrospinal fluid, playing a crucial role in protecting the brain.

Phobia

An intense, irrational fear of specific objects, situations, or activities that leads to avoidance behavior.

Prevalence

The proportion of a population that is found to have a particular condition or disease at a specific time.

Gender Ratio

The numerical relationship between the number of individuals of one gender in comparison to another within a specific population or context.