A Firm Has a Debt-To-Equity Ratio of

question 54

Multiple Choice

A firm has a debt-to-equity ratio of .45 and a pretax cost of debt of 8 percent.The firm's WACC is 12.68 percent.What is the levered cost of equity if there are no taxes or other imperfections?

• A)10.57%
• B)13.58%
• C)14.79%
• D)18.03%
• E)16.67%

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Definitions:

EOF-Controlled

Refers to a loop or control structure that continues operation until reaching the End of File (EOF) marker in data processing.

Counter

A variable used in programming to tally occurrences or to keep track of incremental repetitions in control structures like loops.

Logical Expression

A statement that can be evaluated to true or false, often used in decision-making structures in programming.

For Loop

A for loop is a control flow statement in programming that allows code to be executed repeatedly based on a condition and iteration expression.