Question
20. Goofball, Inc. has a target debt-equity ratio of 1.15.Its WACC is 9.4%, the tax rate is 35%, and the after tax cost of debt
20. Goofball, Inc. has a target debt-equity ratio of 1.15.Its WACC is 9.4%, the tax rate is 35%, and the after tax cost of debt is 6.8%.What is the cost of equity?
A. 12.13%
B. 12.39%
C. 12.63%
D. 13.03%
E. 13.35%
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
