If KT expects to maintain a debt to equity ratio for this project of .6 then KT's equity cost of capital,r_E,for this project is closest to: A)5.0% B)12% C)15.0% D)17.0%

Name: If KT expects to maintain a debt to equity ratio for this project of .6 then KT's equity cost of capital,r E ,for this project is closest to: A)5.0% B)12% C)15.0% D)17.0%
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C)r_E = r_U + 11ea7cce_3cad_02c7_928c_f76d54868b3a_TB1626_11 (r_U - r_D) r_E = .12 + .6(.12 - .07)= .15 or 15%

If KT Expects to Maintain a Debt to Equity Ratio