Sun sports has a unlevered cost of capital of 11 a cost of
Sun Sports has a unlevered cost of capital of 11%, a cost of debt of 7%, and a tax rate of 40%. What is the cost of equity if the debt-equity ratio is 0.50?
a. 2.40%
b. 7%
c. 11%
d. 12.20%
e. 13%
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