Business, 05.11.2020 19:20 ddmoorehouseov75lc

Your firm has a debt-equity ratio of .75. Your pre-tax cost of debt is 8.5% and your required return on assets is 15%. What is your cost of equity if you ignore taxes? (Use MM Prop II, No Tax). A. 11.25%
B. 12.21%
C. 16.67%
D. 19.88%
E. 21.38%

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Your firm has a debt-equity ratio of .75. Your pre-tax cost of debt is 8.5% and your required return...