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The Tree House has a pretax cost of debt of 6.1 percent and a return on assets of 11 percent. The debtequity ratio is .56.
The Tree House has a pretax cost of debt of 6.1 percent and a return on assets of 11 percent. The debtequity ratio is .56. Ignore taxes. What is the cost of equity?
Multiple Choice
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13.74%
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14.99%
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14.19%
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8.26%
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14.43%
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