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:

Labor Force

The total number of people who are eligible to work and are either employed or actively looking for employment.

Organizational Climates

The shared perceptions and attitudes about an organization, influencing its members' behavior and attitudes towards work and each other.

Structured

Organized in a clear, systematic way, often with a set format or pattern.

Authoritarian

A management approach where a single person makes all the decisions without much contribution from the team members.