Suppose Blank Company has only one project,as forecast above,and an unlevered cost of equity of 8%.If the company uses no leverage,what is expected return to equity holders?
A)8.0%
B)11.6%
C)9.33%
D)30.0%
E)33.3%

Question

Quizplus · Accepted Answer

Since the company has no leverage, the expected return to equity holders will be equal to the unlevered cost of equity, which is given as 8%. Therefore, option A) 8.0% is the correct answer.

Suppose Blank Company Has Only One Project,as Forecast Above,and an Unlevered