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  3. a firm has total debt of $900 an total equity of $

a firm has total debt of $900 an total equity of $1600. the cost of debt is...

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Finance

afirm has total debt of $900 an total equity of $1600. the cost ofdebt is 10% and the unlevered rate of return is 13%. The tax rateis 34%. What is the cost equity?

A) 14.69%
B)14.11%
C) 13.88%
D)12.29%
E) 12.69%

Answer & Explanation Solved by verified expert
4.3 Ratings (795 Votes)
Solution The formula for calculating the Cost of equity capital is Ke Ru Ru Kd 1 t DE Where Ke Cost of    See Answer
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