Question
If the value of a firm is $884,690, the value of its debt is $208,595, the after-tax cost of debt is 7% and the overall
If the value of a firm is $884,690, the value of its debt is $208,595, the after-tax cost of debt is 7% and the overall cost of capital (WACC) is 10%, what is the cost of equity for this firm?
Answer is 0.109, just wondering on a solution.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
