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Calculate the firm's current required rate of return on equity using the following information K m = 11.00% current debt $250,000 K rf = 5.00%
Calculate the firm's current required rate of return on equity using the following information
Km = | 11.00% | current debt | $250,000 | |
Krf = | 5.00% | current equity | $750,000 | |
Tax rate = | 25.00% | new debt level | $450,000 | |
current B | 1.0550 | unlevered B | 0.8440 |
Select one:
a.
0.1133
b.
0.1128
c.
0.1161
d.
0.1661
e.
0.1006
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