A Firm Has a Debt-Equity Ratio Of

question 20

Multiple Choice

A firm has a debt-equity ratio of.40, a WACC of 16%, and a yield-to-maturity on its debt of 13%. Ignoring taxes, what is the cost of equity?

• A) 7.8%
• B) 9.6%
• C) 11.8%
• D) 15.2%
• E) 17.2%

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USDA Dietary Guidelines

Recommendations issued by the United States Department of Agriculture to help individuals choose diets that will meet nutritional needs, promote health, and prevent disease.

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