Question
Home Decor has a debt-equity ratio of .48. The cost of equity is 16.4 percent and the aftertax cost of debt is 4.2 percent. What
| Home Decor has a debt-equity ratio of .48. The cost of equity is 16.4 percent and the aftertax cost of debt is 4.2 percent. What will the firm's cost of equity be if the debt-equity ratio is revised to .70? |
| 18.21 percent |
| 17.70 percent |
| 13.69 percent |
| 18.47 percent |
| 17.89 percent |
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
