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Title: The unlevered cost of capital for Armadillo Industries is closest to:
Post by: johnpaech on Nov 21, 2017
The unlevered cost of capital for Armadillo Industries is closest to:
A) 10.3%
B) 10.0%
C) 9.5%
D) 9.9%


Title: Re: The unlevered cost of capital for Armadillo Industries is closest to:
Post by: deusmaroto on Nov 21, 2017
A
Explanation:  A) rU =   rE +   rD

Comparable Firm   Equity Cost of Capital   Debt Cost of Capital   Debt-to-Value Ratio   rU
Anteater Enterprises   12.50%   6.50%   50%   9.50%
Armadillo Industries   13%   6.10%   40%   10.24%
Antelope Inc.   14%   7.10%   60%   9.86%


Title: Re: The unlevered cost of capital for Armadillo Industries is closest to:
Post by: johnpaech on Aug 1, 2018
This course drove me insane!