A firm has a debt-equity ratio of 1.0. The required return on the firm's assets is 16.1% and the pre-tax cost of debt is 9.1%. What is the firm's cost of equity? a. 15.3% b. 18.2% c. 23.1% d. 21.7%
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- A firm had a debt ratio of 0.85. The pretax cost of debt is 8% and the reqiured return on asset is 15.5%. What is the cost of equity if we factorin the firms tax rate of 24%? A) 19.53 B) 18.92 C) 21.57 D) 20.35 E) 20.96What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of debt is 6.92%, and the target debt/equity ratio is 1.19? Ignore taxes. O A) 19.05%A firm had a debt ratio of 1.20. The pretax cost of debt is 8% and the reqiured return on asset is 13%. What is the cost of equity if you Ignore taxes? A) 18.24% B) 20.14% C)17.67% D) 19.57% E) 19%
- Please answer the questionCompany X has a cost of equity of 16.31% and a pretax cost of debt of 7.8%. The debt-equity ratio is 0.56 and the tax rate is 21%. What is the unlevered cost of capital? A )14.01% b) 13.85% c) 13.70% D) 14.08% E)14.26%A firm has a return on assets of 7.8 percent and a cost of equity of 11.9 percent. What is the pretax cost of debt if the debt–equity ratio is .72? Ignore taxes.
- CalculateGiven the solution accountingA firm wants to create a WACC of 11.4%. The firm's cost of equity is 14.7% and the pre- tax cost of debt is 7.5%. The tax rate is 34%. What does its target debt ratio need to be for the firm to achieve its target WACC of 11.4%? a. 35.35% b. 33.85% c. 53.88% d. 46.12%
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