Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 10 percent and the required return on assets is 18 percent. What is the cost of equity if you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (e. write 12.63, not 01263) Numeric Response
Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 10 percent and the required return on assets is 18 percent. What is the cost of equity if you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (e. write 12.63, not 01263) Numeric Response
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 10 percent and the required return on assets is 18 percent. What is the cost of equity if
you ignore taxes? Write your answer as a percent rounded to two digits, but don't include the % sign (.e. write 12.63, not 0,1263)
Numeric Response
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