A Firm Has a Market Value of Assets of $50,000

question 23

Multiple Choice

A firm has a market value of assets of $50,000. It borrows $10,000 at 7%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital?

• A) 18%
• B) 16%
• C) 17%
• D) 19%

---

Definitions:

Positron-Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body.

Brain

The complex organ located in the skull, responsible for cognitive function, neural processing, and control of the body.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

Conscious Experiences

Refers to phenomena that encompass all the experiences that are felt or lived through by an individual.