The firm financed completely with equity capital has a cost of capital equal to the required return on ordinary shares.
Correct Answer:
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Q63: If the before-tax cost of debt is
Q69: Because issuing ordinary equity entails less risk
Q70: The proportion of debt in this firm's
Q71: The after-tax cost of ordinary shares is
A)14.67%.
B)13.23%.
C)12.41%.
D)11.65%.
Q72: Assuming an after-tax cost of preference shares
Q73: The cost of ordinary equity is already
Q74: The after-tax cost of debt is
A) 6.20%.
B)
Q76: Alpha's beta is 1.06,the present T-bond rate
Q77: The cost of debt is equal to
Q78: The current total value of the firm
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