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Question 8 2.5 pts Your company maintains a constant D/V ratio and operates in a country in which there are no taxes. The company has
Question 8 2.5 pts Your company maintains a constant D/V ratio and operates in a country in which there are no taxes. The company has an equity cost of capital of 15%, and the yield to maturity on its long-term debt is also 15%. You believe there is 1% chance the company will default on its debt next year. Is the company's unlevered cost of capital more than 15% or less than 15%? O To answer this question, we need to know the company's D/V ratio. 0 Less than 15% O More than 15% O Equal to 15% O To answer this question, we need to know the risk-free rate
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