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johnpaech johnpaech
wrote...
Posts: 1098
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6 years ago
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%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
D
Explanation:  D) Using APV VL = VU + TcD =   + (40%)$80 million = $232 million
re = ru +  (ru - rd) = 12% +  (12% - 6%) = 15.157895%
johnpaech Author
wrote...
5 years ago
Really appreciate the help
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