Calculate the Company's Cost of Equity Given the Following Information

question 78

Multiple Choice

Calculate the company's cost of equity given the following information: return on assets 10.50%; return on debt 8.75%; total debt $995,000; total equity $1,520,000.

• A) 8.65%
• B) 9.65%
• C) 10.65%
• D) 11.65%
• E) 12.65%

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