Question
A company has a cost of equity of 13.06% and an unlevered cost of capital of 9.22%. The company has $16,720 in debt that is
A company has a cost of equity of 13.06% and an unlevered cost of capital of 9.22%. The company has $16,720 in debt that is selling at par value. The levered value of the firm is $29,724, and the tax rate is 25%. What is the pre-tax cost of debt?
Question 3 options:
|
| 4.98% |
|
| 5.11% |
|
| 5.24% |
|
| 5.37% |
|
| 5.50% |
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Campaign Finance
Authors: Robert E. Mutch
1st Edition
0190274697, 9780190274696
