A Firm Has a Debt-To-Equity Ratio of

question 64

Multiple Choice

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

• A) 10.0%
• B) 13.5%
• C) 14.4%
• D) 18.0%
• E) None of these.

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Definitions:

Sexual Abuse

A form of abuse involving non-consensual sexual activity or coercion.

Inappropriate Touching

Physical contact that is not consented to, socially unacceptable, or considered offensive.

Coerced

Being forced or compelled to act or think in a certain way through pressure, threats, or intimidation.

Self-Concepts

Self-concepts refer to the collection of beliefs about oneself, including attributes, roles, goals, and competencies.