Multiple Choice. The market value of Charter Cruise Company's equity is $15 million, and the...
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Multiple Choice. The market value of Charter Cruise Company's equity is $15 million, and the market value of its risk-free debt is $5 million. If the required rate of return on the equity is 20% and that on the debt is 8%, calculate the company's cost of capital. (Assume no taxes.) A. 20% B. 17% C. 14% D. None of the above
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