What is the cost of equity if the debt-equity ratio

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Reference no: EM13767785

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%

Reference no: EM13767785

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