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Given the all-equity cost of capital, the cost of levered equity can be computed as: R S = ( B / S )( R 0
Given the all-equity cost of capital, the cost of levered equity can be computed as:
RS = (B /S)(R0) + (1 tc)B.
RS = R0 + (B / S)(1 tc)(R0 RB).
RS = R0 + (1 tc)B.
R0 = Rs + (B / S)(1 tc)(R0 RB).
R0 = Rs + (1 tc)B.
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