Question: A firm has two components in its capital structure, debit and equity. The After-tax is 4%. The proportion of debt in the capital structure is

A firm has two components in its capital structure, debit and equity. The After-tax is 4%. The proportion of debt in the capital structure is 35%. The Firms WACC is 10.5%. What is the cost of Equity.

A - 17%

B - 16%

C - 15%

D - 14%

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