Cost of Equity for a Firm
November 13th, 2022
What is the cost of equity for a firm for which the required return on assets is 14%, the cost of debt is 11%, and the target debt/equity ratio is 0.5? Ignore taxes.
a) 11.0%
b) 12.5%
c) 14.0%
d) 15.5%
e) 16.0%