The Unlevered Cost of Capital Is

question 52

Multiple Choice

The unlevered cost of capital is:

• A)the cost of capital for a firm with no equity in its capital structure.
• B)the cost of capital for a firm with no debt in its capital structure.
• C)the interest tax shield times pretax net income.
• D)the cost of preferred stock for an all-equity firm.
• E)equal to the profit margin for a firm with some debt in its capital structure.

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