The unlevered cost of capital refers to the cost of capital for a(n):
A)private entity.
B)all-equity firm.
C)governmental entity.
D)private individual.
E)corporate shareholder.

Question

Quizplus · Accepted Answer

The unlevered cost of capital is the cost of capital for an all-equity firm, meaning a firm that does not have any debt in its capital structure. This cost of capital is based solely on the equity investors' required rate of return and the riskiness of the underlying assets.

The Unlevered Cost of Capital Refers to the Cost of Capital