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A public traded company has a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What

A public traded company has a debt-equity ratio of 0.6.

Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for the company would be if its target capital structure were 50% debt and 50% equity?

MC Options:

A. 11.5%

B. 12.0%

C. 9.5%

D. 11.0%

E. 10.5%

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Question

A public traded company has a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What

A public traded company has a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for the company would be if its target capital structure were 50% debt and 50% equity? MC Options: A. 11.5% B. 12.0% C. 9.5% D. 11.0% E. 10.5%

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A public traded company has a debt-equity ratio of 0.6.

Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for the company would be if its target capital structure were 50% debt and 50% equity?

MC Options:

A. 11.5%

B. 12.0%

C. 9.5%

D. 11.0%

E. 10.5%