Dee's Toys has a target debt-equity ratio of .62. Its WACC is 11.3 percent and the tax rate is 21 percent. What is the cost of equity if the aftertax cost of debt is 6.3 percent?
A) 15.15 percent
B) 15.04 percent
C) 14.68 percent
D) 14.79 percent
E) 14.40 percent
Correct Answer:
Verified
Q64: AZ Products has 140,000 shares of common
Q65: The Dry Well has 6.85 percent preferred
Q66: Cookie Dough Manufacturing has a target debt-equity
Q67: The Well Derrick has 6.3 percent preferred
Q68: Granite Works maintains a debt-equity ratio of
Q70: Florida Groves has a $380,000 bond issue
Q71: Delta Lighting has 24,500 shares of common
Q72: Simple Foods has a zero coupon bond
Q73: Theresa's Flower Garden has 650 bonds outstanding
Q74: Grill Works has 6 percent preferred stock
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents