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A firm has a debt-to-equity ratio of .60. Its cost of debt is 8%. Its overall cost of capital is 12%. What is its cost of equity if there are no taxes or other imperfections? A. 10.0% B. 13.5% C. 14.4% D. 18.0% E. None of the above. A. :C B. 程度:难 C. 解析:Rwacc = .12 = (.6/1.6)(.08) + (1/1.6)X.12 = .375(.08) + .625(X) .09 = .625x X = .144 = 14.4% D. :单选题 E. 、 A firm has a debt-to-equity ratio of 1. Its cost of equity is 16%, and its cost of debt is 8%. If there are no taxes or other imperfections, what would be its cost of equity if the debt-to-equity ratio were 0? A. 8% B. 10% C. 12% D. 14% E. 16%