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

question 94

Multiple Choice

A firm has a market value of assets of $50,000.It borrows $10,000 at 7%.If the unlevered cost of equity is 15%,what is the firm's cost of equity capital?

• A)15%
• B)16%
• C)17%
• D)18%
• E)19%

---

Definitions:

Peer Relationships

Interactions and bonds formed between individuals of similar ages, often contributing significantly to social development.

Feeling Of Belonging

An emotional state where individuals perceive themselves as integral parts of a system or group.

Individuality

The unique characteristics and qualities that distinguish one person from another.

Confidentiality

The ethical principle or legal right that mandates keeping certain information shared between two parties private and secure.