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Title: If Galt's debt cost of capital is 6%, then Galt's equity cost of capital is closest to: Post by: johnpaech on Nov 20, 2017 If Galt's debt cost of capital is 6%, then Galt's equity cost of capital is closest to:
A) 11.2% B) 12.0% C) 14.8% D) 15.2% Title: Re: If Galt's debt cost of capital is 6%, then Galt's equity cost of capital is closest to: Post by: deusmaroto on Nov 20, 2017 D
Explanation: D) Using APV VL = VU + TcD = + (40%)$80 million = $232 million re = ru + (ru - rd) = 12% + (12% - 6%) = 15.157895% Title: Re: If Galt's debt cost of capital is 6%, then Galt's equity cost of capital is closest to: Post by: johnpaech on Aug 1, 2018 Really appreciate the help
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