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3) Al Arabi Designs has a debt-equity ratio of 28 percent. The firm's required return on assets is 14 percent and its cost of
3) Al Arabi Designs has a debt-equity ratio of 28 percent. The firm's required return on assets is 14 percent and its cost of debt is 7%. What is the levered cost of equity based on MM Proposition II with a tax rate of 25%? C A) 17.24 percent B) 17.55 percent C) 15.47 percent D) 15.96 percent
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Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
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