BK Inc Has a Cost of Debt of 10% and a a WACC

question 116

Multiple Choice

BK Inc. has a cost of debt of 10% and a WACC of 15%. The debt-equity ratio is.6. The tax rate is 35%. What is the cost of equity?

• A) 19.33%
• B) 19.88%
• C) 20.10%
• D) 20.54%
• E) 20.67%

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