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19. Run with the Squirrels TM has a debt-equity ratio of 1 , a cost of debt of 4 percent, and a WACC of

19. "Run with the Squirrels TM " has a debt-equity ratio of 1 , a cost of debt of 4 percent, and a WACC of 12 percent. Assume no taxes (i.e., the cost of debt has no tax credit). What is the cost of equity (Rss) ? (a) 10% (b) 20% (c) 8% (d) 12%

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