Question
A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is 18.6%, and the pretax cost of debt is 9.4%,
A company's CFO wants to maintain a target debt-to-equity ratio of 1/3. If the WACC is 18.6%, and the pretax cost of debt is 9.4%, what is the cost of common equity assuming a tax rate of 33%?
16.40%
20.90%
21.70%
23.93%
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Truth About Buying Annuities Annuities Can Make Or Break Your Retirement
Authors: Steve Weisman
1st Edition
0132353083,0132701162
