Question
6. Vivo Energy has a cost of equity of 12.84 percent and a pretax cost of debt of 6 percent. The debt-equity ratio is 1.40
6. Vivo Energy has a cost of equity of 12.84 percent and a pretax cost of debt of 6 percent. The debt-equity ratio is 1.40 and the tax rate is 25 percent. What is the company's unlevered cost of capital?
| a | 9.03% | |
| b | 9.28% | |
| c | 9.34% | |
| d | 9.55% | |
| e | 9.77% |
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Quantitative Financial Risk Management
Authors: Constantin Zopounidis, Emilios Galariotis
1st Edition
1118738187, 978-1118738184
