Question
Fannie Toys has a cost of equity of 11 percent and a pretax cost of debt of 6.2 percent. The debt-equity ratio is .4 and
Fannie Toys has a cost of equity of 11 percent and a pretax cost of debt of 6.2 percent. The debt-equity ratio is .4 and the tax rate is 35 percent. What is the unlevered cost of capital?
| 10.43% | ||
| 10.01% | ||
| 9.78% | ||
| 10.62% | ||
| 9.45% |
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
