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EpiscoWhat EpiscoWhat
wrote...
Posts: 268
Rep: 4 0
6 years ago
Prior to any borrowing and share repurchase, the equity cost of capital for RC is closest to:
A) 11%
B) 10%
C) 12%
D) 9%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 68 times
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wrote...
6 years ago
B
Explanation:  B) EPS = EBIT/Shares outstanding = $6M/5M shares = $1.20 EPS

V = 
$12.00 =   so rU = .10
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