Your firm has a pre tax cost of debt of 7 and an unlevered cost of capital of 13 Your tax rate is 35 and your cost of equity is 15 26 What is your debt equity ratio ...

Computation of DebtEquity ratio R e R a D ...

Your firm has a pre-tax cost of debt of 7% and an unlevered cost of capital of

Question:

Your firm has a pre-tax of 7% and an unlevered of 13%. Your tax rate is 35% and your is 15.26%. What is your debt-equity ratio?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...