Question
A firm has two components in its capital structure, debit and equity. The After-tax is 4%. The proportion of debt in the capital structure is
A firm has two components in its capital structure, debit and equity. The After-tax is 4%. The proportion of debt in the capital structure is 35%. The Firms WACC is 10.5%. What is the cost of Equity.
A - 17%
B - 16%
C - 15%
D - 14%
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
