A firm has a debt-to-equity ratio of .5.Its cost of equity is 22%, and its cost of debt is 16%.If the corporate tax rate is .40, what would its cost of equity be if the debt-to-equity ratio were 0?
A)14.00%
B)20.61%
C)21.07%
D)22.00%
E)None of the above.

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The Answer of A firm has a debt-to-equity ratio of .5.Its cost of equity is 22%, and its cost of debt is 16%.If the corporate tax rate is .40, what would its cost of equity be if the debt-to-equity ratio were 0?
A)14.00%
B)20.61%
C)21.07%
D)22.00%
E)None of the above.

A Firm Has a Debt-To-Equity Ratio of