What will be cost of equity if debt-equity ratio is revised


Problem

Home Decor has a debt-equity ratio of .54. The cost of equity is 15.7 percent, the pretax cost of debt is 6.8 percent, and the tax rate is 22 percent. What will be the cost of equity if the debt-equity ratio is revised to .65?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What will be cost of equity if debt-equity ratio is revised
Reference No:- TGS03238141

Expected delivery within 24 Hours