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The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%. The company is 1/3 debt financed.
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The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%.
The company is 1/3 debt financed.
The Unlevered Cost of Equity is:
A. 8%
B. 11%
C. 6%
D. 10%
E. 12%
The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%.
The company is 1/3 debt financed.
The Unlevered Cost of Equity is:
| A. | 8% | |
| B. | 11% | |
| C. | 6% | |
| D. | 10% | |
| E. | 12% |
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