A global conglomerate has a debt beta of zero.If the cost of equity is 12.23 percent,and the risk-free rate is 4.36 percent,what is the firm's pretax cost of debt?
A) 4.36 percent
B) 8.30 percent
C) 7.87 percent
D) 0 percent
E) 12.23 percent
Correct Answer:
Verified
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