FIN-326-88 Intermediate Corporate Finance Dropbox Discussions Grades Quizzes classlist Groups More v Exam 1 Quiz Mitchell Molnar: Attempt 1 Best Bagels, Inc. (BB) currently has zero debt, an unleveraged firm. The firm has a total market value of Management is considering recapitalizing by issuing enough debt so that the firm has a capital structure consisting of 30% 70% equity, based on a market value at a before tax cost of7%. Best Bagels will use the proceeds to repurchase stock at the new equilibrium market price. Its eamings before interest and taxes (EBIT are S100,000, and it is a zero growth company. Its tax rate is 40%. The firm has 20,000 shares of common stock outstanding selling at a price per share of S23.08. Question 34 (2.5 points) What is the BB's current cost of equity? 13.00% 14.95% O 15.76% O 11,56% 12.68% Log Out FIN-326-88 Intermediate Corporate Finance Dropbox Discussions Grades Quizzes classlist Groups More v Exam 1 Quiz Mitchell Molnar: Attempt 1 Best Bagels, Inc. (BB) currently has zero debt, an unleveraged firm. The firm has a total market value of Management is considering recapitalizing by issuing enough debt so that the firm has a capital structure consisting of 30% 70% equity, based on a market value at a before tax cost of7%. Best Bagels will use the proceeds to repurchase stock at the new equilibrium market price. Its eamings before interest and taxes (EBIT are S100,000, and it is a zero growth company. Its tax rate is 40%. The firm has 20,000 shares of common stock outstanding selling at a price per share of S23.08. Question 34 (2.5 points) What is the BB's current cost of equity? 13.00% 14.95% O 15.76% O 11,56% 12.68% Log Out