Question
Douglass & Frank has a debt-equity ratio of .51. The pretax cost of debt is 7.8 percent while the unlevered cost of capital is 12.6
Douglass & Frank has a debt-equity ratio of .51. The pretax cost of debt is 7.8 percent while the unlevered cost of capital is 12.6 percent. What is the cost of equity if the tax rate is 21 percent?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
