Kizspy | Question: 23
(Choose 1 answer)
Suppose a company uses only debt and internal equity to finance its capital budget. Company estimates that its WACC is 12%. The capital structure is 25% debt and 75% internal equity. After tax cost of debt is 5%. What is the cost of equity?
Α. 14.33%
B. 15.28%
C. 12.55%
D. 13.52%
