Calculate the Cost of Equity Capital from the Following Data

question 52

Multiple Choice

Calculate the cost of equity capital from the following data: cost of debt = 12%,D = $0.2 million,E = $0.3 million,and the increment for financial risk = 4%.

• A)16.8%
• B)14.8%
• C)18.7%
• D)15.2%

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Definitions:

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