What Is Its Cost of Equity If There Are No

question 26

Multiple Choice

What is its cost of equity if there are no taxes or other imperfections? The firm has a debt-to-equity ratio of.60. Its cost of debt is 8%. Its overall cost of capital is 12%.

• A) 18%.
• B) 14.4%.
• C) 10%.
• D) 13.5%.

---

Definitions:

Statements

Sentences or expressions that convey opinions, facts, or values, often used to clarify positions or communicate information.

Paradigm

A distinct set of concepts or thought patterns, including theories, research methods, postulates, and standards for what constitutes legitimate contributions to a field.

Metaparadigm

A fundamental set of concepts and propositions that defines a discipline's overarching framework or viewpoint.

Syntactical

Related to syntax, which is the set of rules, principles, and processes that govern the structure of sentences in a given language or system.