A Firm Has a Market Value of Assets of $50,000

question 69

Multiple Choice

A firm has a market value of assets of $50,000.It borrows $10,000 at 5%.If the unlevered cost of equity is 15%,what is the firm's cost of equity capital?

• A)15%
• B)17.5%
• C)18.5%
• D)19.2%
• E)20.6%

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