What Is Its Cost of Equity If There Are No

question 26

Multiple Choice

What is its cost of equity if there are no taxes or other imperfections? The firm has a debt-to-equity ratio of.60. Its cost of debt is 8%. Its overall cost of capital is 12%.

• A) 18%.
• B) 14.4%.
• C) 10%.
• D) 13.5%.

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