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A firm has a debt-to-equity ratio of .60. Its cost of debt is 8%. Its overall cost of capital is 12%. What is its cost
A firm has a debt-to-equity ratio of .60. Its cost of debt is 8%. Its overall cost of capital is 12%. What is its cost of equity if there are no taxes or other imperfections?
A. 10.0% | ||
B. 13.5% | ||
C. 14.4% | ||
D. 18.0% | ||
E. None of these. |
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