The Unlevered Cost of Capital Is The

question 7

Multiple Choice

The unlevered cost of capital is the:

• A)expected return on the equity of the firm if the firm is financed equally with equity and debt.
• B)expected return on the equity of the firm if the firm is financed entirely with equity or debt.
• C)expected return on the equity of the firm if the firm is financed entirely with debt.
• D)expected return on the equity of the firm if the firm is financed entirely with equity.