help with question please9

timer Asked: Sep 9th, 2014
account_balance_wallet $5

Question Description

In order to find the cost of equity using the firm’s cost of debt, the rule of thumb is to:multiply Kd by one plus the tax rate;multiply Kd by one minus the tax rate;add 3% to 6% to Kd;multiply Kd by the firm’s beta.

Tutor Answer

School: UIUC

Multiply Kd by one minus the tax rate

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