Winter's Toyland has a debt-equity ratio of 2.00. The cost of debt is 10 percent and the required return on assets is 19 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 (i.e. write 12.63, not 0.1263).

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Winter's Toyland has a debt-equity ratio of 2.00. The cost of debt
is 10 percent and the required return on assets is 19 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 (i.e. write 12.63,
not 0.1263).
Transcribed Image Text:Winter's Toyland has a debt-equity ratio of 2.00. The cost of debt is 10 percent and the required return on assets is 19 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 (i.e. write 12.63, not 0.1263).
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