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Question 1 1 Winter's Toyland has a debt - equity ratio of . 5 5 . The pretax cost of debt is 8 . 7

Question 11
Winter's Toyland has a debt-equity ratio of .55. The pretax cost of debt is 8.7 percent and the required return on assets is 16.1
percent. What is the cost of equity if you ignore taxes?
Excel Template.xlsx
19.85 percent
19.31 percent
20.55 percent
20.17 percent
E)20.91 percent
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