Question
Glass Growers has a cost of capital of 11.1 percent. The company is considering converting to a debt-equity ratio of .46. The interest rate on
Glass Growers has a cost of capital of 11.1 percent. The company is considering converting to a debt-equity ratio of .46. The interest rate on debt is7.3 percent. What would be the companys new cost of equity?
A) 12.44 percent
B) 11.61 percent
C) 12.85 percent
D) 11.13 percent
E) 12.36 percent
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Mathematical Finance Core Theory Problems And Statistical Algorithms
Authors: Nikolai Dokuchaev
1st Edition
0415414482, 978-0415414487
