A firm has a debt to equity ratio of 40%, debt of $350,000, and net income of $95,000. The return on equity is: a. 16.32% b. 15.89% c. 30.12% d. 10.86% e. None of the above.
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- A firm has a debt-equity ratio of .52, a pretax cost of debt of 6.5 percent, and a required return on assets of 12 percent. Ignoring taxes, what is the cost of equity? Multiple Choice 12.86 percent 14.36 percent 14.86 percent 20.36 percent 12.00 percentA firm has a debt-to-equity ratio of 1.20. If it had no debt, its cost of equity would be 15%. Its cost of debt is 10%. What is its cost of equity if there are no taxes or other imperfections? A. 10% B. 15% C. 18% D. 21% E. None of these.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%
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