A Firm Has a Debt-Equity Ratio of 0

question 43

Multiple Choice

A firm has a debt-equity ratio of 0.45,an unlevered WACC of 12.68 percent,and a pretax cost of debt of 6.8 percent.What is the levered cost of equity if there are no taxes or other imperfections?

• A)13.68%
• B)15.58%
• C)15.33%
• D)13.72%
• E)14.67%

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Pairs of elements taken from two sets, typically representing the coordinates of points in a coordinate system.

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A mathematical statement that uses an equals sign to express that two expressions have the same value.