Question: Given the data in the below table, what is the cost of capital of this company? 6.2% 4.0% 5.9% 3.7% Cost of Equity After-tax cost

Given the data in the below table, what is the cost of capital of this company?

Cost of Equity After-tax cost of debt Debt-to-equity ratio 5% 7% 1.5

  1. 6.2%
  2. 4.0%
  3. 5.9%
  4. 3.7%

Cost of Equity After-tax cost of debt Debt-to-equity ratio 5% 7% 1.5

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