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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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