Question: Consider the following equation: U = E + D The term in the equation is: Question 29Select one: A. the required return on the firm's

Consider the following equation: U = E + D The term in the equation is: Question 29Select one: A. the required return on the firm's equity. B. the proportion of the firm financed with equity. C. the same as the beta of the firm's assets. D. equal to zero if the firm's debt is riskless. 2.Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock. Assume perfect capital markets. If Rearden borrows until they achieved a debt-to-equity ratio of 50%, then Rearden's levered cost of equity would be closest to: Question 30Select one: A. 16.0%. B. 10.0%. C. 15.0%. D. 12.0%

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