Find cost of equity for firm for required return on assets


What is the cost of equity for a firm for which the required return on assets (RA) is 14%, the cost of debt is 11%, and a target debt/equity ratio is .50?

1. 11.0%
2. 12.5%
3. 14.0%
4. 15.5%
5. 16.0%

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find cost of equity for firm for required return on assets
Reference No:- TGS0677446

Now Priced at $5 (50% Discount)

Recommended (94%)

Rated (4.6/5)