Question
Boston Pharma has a cost of equity of 13.2 percent and a pretax cost of debt of 6.3 percent. The debt-equity ratio is 1.50 and
Boston Pharma has a cost of equity of 13.2 percent and a pretax cost of debt of 6.3 percent. The debt-equity ratio is 1.50 and the tax rate is 25 percent. What is the unlevered cost of capital?
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
