Presley Cleaners has an all-equity capital structure with an equity value of $64,100.The expected earnings are $8,900 based on estimated sales of $60,000.The firm pays no taxes.What is the cost of capital?
A) 13.88%
B) 12.08%
C) 14.83%
D) 14.34%
E) 12.37%
Correct Answer:
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