Glass Growers has a cost of capital of 11.1 percent.The company is considering converting to a debt-equity ratio of .46.The interest rate on debt is7.3 percent.What would be the company’s new cost of equity? Ignore taxes.
A) 12.85 percent
B) 11.13 percent
C) 12.36 percent
D) 12.44 percent
E) 11.61 percent
Correct Answer:
Verified
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