Question
NTT Inc. has a debt-to-equity ratio of 1.5. Its weighted average cost of capital (WACC) is 15% and cost of debt is 5%. NTT Inc.
NTT Inc. has a debt-to-equity ratio of 1.5. Its weighted average cost of capital (WACC) is 15% and cost of debt is 5%. NTT Inc. faces a corporate tax rate of 20%. Compute the of cost equity capital of NTT Inc., if its debt-to-equity ratio is 1.
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Public Finance
Authors: Laurence S. Seidman
1st Edition
0073375748, 978-0073375748
