Question
The Tip-Top Paving Co. has an equity cost of capital of 16.97% The debt to value ratio is .6 and a cost of debt of
The Tip-Top Paving Co. has an equity cost of capital of 16.97% The debt to value ratio is .6 and a cost of debt of 11%. What is the cost of equity if Tip-Top was unlevered?
*No tax rate given*
A. 3.06%
B. 14.73%
C. 16.97%
D. 0.08%
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Analysis Of Financial Data
Authors: Gary Koop
1st Edition
0470013214, 978-0470013212
