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jason23 jason23
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3 weeks ago
James Bay Water Park operates in a world with zero taxes and no financial distress. The firm has a debt/equity ratio of 1. The cost of equity is 15% and the cost of debt is 8%. The only difference between Whispering Pines Resort and James Bay Water Park is that Whispering Pines Resort has a debt/equity ratio of 3. What is the cost of equity for Whispering Pines Resort?

▸ 12.67%

▸ 15.0%

▸ 22.0%

▸ 11.5%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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LoveameriahLoveameriah
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