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If the required return on equity for an unlevered firm is 10%, what is the cost of equity if this firm were financed partially by
If the required return on equity for an unlevered firm is 10%, what is the cost of equity if this firm were financed partially by equity? The debt-to-asset ratio is 0.5, the tax rate is 30%, the pre-tax cost of debt is 6%. Multiple Choice 6.00% 11.30% 10.00% 12.60% 7.00% In the TSX, RIM stock closed at CAD85 per share. On the same day, the exchange rate was CAD1.34/USD. RIM stock trades as an ADR in the OTC market in the United States. Seven RIM shares are packaged into one ADR. What is the approximate no-arbitrage US price of one ADR? Multiple Choice $444. $114. $63. $595. $797
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