Question
21. CougStore has a pre-tax cost of debt of 5.5 percent and a cost of equity of 14 percent and. The debt-equity ratio is 0.7
21. CougStore has a pre-tax cost of debt of 5.5 percent and a cost of equity of 14 percent and. The debt-equity ratio is 0.7 and the tax rate is 30 percent. What is CougStores unlevered cost of capital? (5 points)
A. 10.72 percent
B. 11.85 percent
C. 14.29 percent
D. 14.46 percent
E. 15.08 percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
