Question
A firm has a debt-equity ratio of 1.75 and a weighted average cost of capital of 12%. The corporate tax rate is 0%. Assuming 0
A firm has a debt-equity ratio of 1.75 and a weighted average cost of capital of 12%. The corporate tax rate is 0%. Assuming 0 bankruptcy costs. What would be the cost of equity if the firm were financed with no debt? Approximate annual rate=?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
