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Straley Corporations capital structure consists of $2,690,000 of assets and $1,600,000 of liabilities. Stasia Straley, the corporations CEO and largest shareholder, says that the debt
Straley Corporations capital structure consists of $2,690,000 of assets and $1,600,000 of liabilities. Stasia Straley, the corporations CEO and largest shareholder, says that the debt has an average interest rate of 14 percent and that stockholders want a 9 percent return. What is Straley Corporations cost of capital?
11.02%
10.22%
9.84%
11.97%
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