Question
What would be the cost of equity for Firm X at an Equity/Capital ratio of 1.0 (no debt), assuming that rRF = 5% and RPM
What would be the cost of equity for Firm X at an Equity/Capital ratio of 1.0 (no debt), assuming that rRF = 5% and RPM = 4%? Equity/Capital ratio (Case 1) =1.00 EquityCapital ratio (Case 2)=0.58 rRF=5% RPM=4% bu=.8101 tax rate=25%
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Financial Intelligence For HR Professionals
Authors: Karen Berman, Joe Knight, John Case
1st Edition
1422119130, 978-1422119136
