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Home Decor has a debt-equity ratio of 54. The cost of equity is 15.7 percent, the pretax cost of debt is 6.8 percent, and the
Home Decor has a debt-equity ratio of 54. The cost of equity is 15.7 percent, the pretax cost of debt is 6.8 percent, and the tax rate is 22 percent. What will be the cost of equity if the debt-equity ratio is revised to .65?
15.69 percent
17.07 percent
16.44 percent
16.89 percent
14.70 percent
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