Deersquos toys has a target debt-equity ratio of 55 its
Dee’s Toys has a target debt-equity ratio of .55. Its WACC is 12.4 percent and the tax rate is 34 percent. What is the cost of equity if the aftertax cost of debt is 5.5 percent?
A. 15.75%
B. 15.84%
C. 14.41%
D. 14.79%
E. 16.20%
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