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Cotton Wood Limited has a debt-equity ratio of 0.6, a WACC of 10.8%, a pretax cost of debt of 7.9%, and a tax rate of
| Cotton Wood Limited has a debt-equity ratio of 0.6, a WACC of 10.8%, a pretax cost of debt of 7.9%, and a tax rate of 16%. What is the unlevered cost of equity capital? |
| A. | 11.49% | |
|
| B. | None of the options |
|
| C. | 10.80% |
|
| D. | 11.67% |
|
| E. | 15.77% |
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Shape Up Your Finances
Authors: Ian Birt
2nd Edition
1925716422, 978-1925716429
