A Firm Has a Debt-To-Equity Ratio of 1

question 77

Multiple Choice

A firm has a debt-to-equity ratio of 1.0.If it had no debt,its cost of equity would be 12%.Its cost of debt is 9%.What is its cost of equity if there are no taxes?

• A)21%
• B)18%
• C)15%
• D)16%

---

Definitions:

Blastula

An early stage of embryonic development in animals, characterized by a sphere of cells surrounding a fluid-filled cavity.

Male Reproductive System

The system in males responsible for producing, maintaining, and transporting sperm and semen, as well as discharging sperm within the female reproductive tract during sex.

Semen

The male reproductive fluid containing spermatozoa and various other components, used for reproduction.

Zygote

The initial cell formed when two gamete cells are joined by means of sexual reproduction.