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The BaPol Company Has a Cost of Equity of 14

Question 7

Multiple Choice

The BaPol Company has a cost of equity of 14% and a weighted average cost of capital of 13.02%.What is the company's cost of debt,if BaPol Company maintains the debt-equity ratio of 0.44? Consider that there are no taxes.


A) 16.68%
B) 13.48%
C) 12.26%
D) 10.80%
E) 17.59%

Correct Answer:

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