Wild Flowers Express Has a Debt-Equity Ratio of

question 35

Multiple Choice

Wild Flowers Express has a debt-equity ratio of .60.The pretax cost of debt is 9 percent while the unlevered cost of capital is 14 percent.What is the cost of equity if the tax rate is 23 percent?

• A)7.52 percent
• B)8.78 percent
• C)16.31 percent
• D)16.83 percent
• E)17.30 percent

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Definitions:

Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment.

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