A firm has a debt-equity ratio of 64 a pre tax cost of debt


A firm has a debt-equity ratio of .64, a pre tax cost of debt of 8.5 %, and a required return on assets of 12.6%. What is the cost of equity if you ignore taxes?

Solution Preview :

Prepared by a verified Expert
Finance Basics: A firm has a debt-equity ratio of 64 a pre tax cost of debt
Reference No:- TGS02315799

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)