A firm has a debt-to-equity ratio of 175 if it had no debt


A firm has a debt-to-equity ratio of 1.75. If it had no debt, its cost equity would be 9%. Its cost of debt is 7%. What is its cost of equity if the corporate tax rate is 50%?

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Financial Management: A firm has a debt-to-equity ratio of 175 if it had no debt
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