Question
Lakeside Resort is a public traded company with a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity
Lakeside Resort is a public traded company with a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for Lakeside Resort would be if its target capital structure were 50% debt and 50% equity?
| A. 11.5% | ||
| B. 12.0% | ||
| C. 9.5% | ||
| D. 11.0% | ||
| E. 10.5% |
3 points
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
