The required return on equity for a levered firm is 10.60 percent. The debt to equity ratio is ½ the tax rate is 40 percent, the pre-tax cost of debt is 8 percent. Find the cost of capital if this firm were financed entirely with equity.
A. 8.67 percent
B. 10 percent
C. 12 percent
D. none of the options
Answer: B
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a. True b. False Indicate whether the statement is true or false
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a. the resources required b. how the training should be carried out c. who should facilitate the training d. all of these
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What will be an ideal response?