Given That Its Debt Is $500,000,its Leverage Value Is $587,500

question 76

Multiple Choice

Given that its debt is $500,000,its leverage value is $587,500.a tax rate of 30%,a cost of debt (unleveraged) of 16%,and a cost of debt of 12%,what is this firm's cost of equity?

• A)23.3%
• B)25.9%
• C)28.8%
• D)32.0%

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