If and , Find

question 220

Multiple Choice

If and , find . ​

• A)-95
• B)-85
• C)-70
• D)0
• E)does not exist

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate them for the risk they undertake by investing their capital.

WACC

Weighted Average Cost of Capital; an estimation of a corporation's cost of capital, with each capital category being weighted in proportion.

Cost of Equity

The return that shareholders require on their investment in the company, often estimated using models such as the Capital Asset Pricing Model (CAPM).