The outlet has an unlevered cost of capital of 142 percent, Ask an Expert

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The Outlet has an unlevered cost of capital of 14.2 percent, a tax rate of 35 percent, and expected earnings before interest and taxes of $23, 400. The company has $23,000 in bonds outstanding that have a coupon rate of 7 percent. The bonds are selling at par. What is the cost of equity?

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Financial Management, Finance

Category:- Financial Management
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