barnabas1968 barnabas1968

15-04-2024
Business

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A firm has a debt-to-equity ratio of 1/4. The WACC is 18.6%, and the pretax cost of debt is 9.4%. What is the cost of common equity if the tax rate is 21%?
a) 22.52%
b) 23.68%
c) 24.80%
d) 25.92%

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