Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 14, Problem 13P
Summary Introduction

To determine: The cost of equity if the debt is 13.00%, and debt cost of capital is 6.00%.

Introduction:

Debt–equity ratio indicates a relative proportion of debt and equity that is used to finance the company’s assets. Basically, a fraction of debt with shareholders equity is termed as debt–equity ratio.

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