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W.V. Trees has a debt-equity ratio of .64, a WACC of 10.8 percent, a pretax cost of debt of 7.9 percent, and a tax rate
W.V. Trees has a debt-equity ratio of .64, a WACC of 10.8 percent, a pretax cost of debt of 7.9 percent, and a tax rate of 24 percent. What is the unlevered cost of equity capital?
| A) | 13.45 percent | |
| B) | 12.97 percent | |
| C) | 13.13 percent | |
| D) | 13.08 percent | |
| E) | 11.92 percent |
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To find the unlevered cost of equity capital we can use the following formula W A C C E E D R E D E ...
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Behavioral Finance Psychology Decision-Making and Markets
Authors: Lucy Ackert
1st edition
324661177, 978-0538752862, 538752866, 978-1111781675, 1111781672, 978-1133455486, 978-0324661170
