A fiRm Has a Debt-To-Equity Ratio of 1

question 31

Multiple Choice

A firm has a debt-to-equity ratio of 1.75.If it had no debt, its cost of equity would be 9%.Its cost of debt is 7%.What is its cost of equity if the corporate tax rate is 30%?

• A)7.73%
• B)10.00%
• C)11.45%
• D)12.50%
• E)None of the above.

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Definitions:

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A sociological theory suggesting that certain social factors remain the underlying causes of various diseases across different time periods, despite changing disease patterns.

Fewest Resources

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A political and economic theory advocating for collective or governmental ownership and administration of the means of production and distribution of goods.

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