help with question please9

User Generated

ZfCbbu

Business Finance

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.

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Explanation & Answer

Multiply Kd by one minus the tax rate

Npnqrzvpurycpragre (761)
UIUC

Anonymous
Great content here. Definitely a returning customer.

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