# Cost of equity

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A firm has a debt-to-equity ratio of 1.20. If it had no debt, its cost of equity would be 15%. Its cost of debt is 10%. What is its cost of equity if there are no taxes or other imperfections?

a. 10%

b. 15%

c. 18%

d. 21%

e. none of the above

https://brainmass.com/business/management-accounting/cost-of-equity-278532

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We have to calculate the levered cost of equity given the unlevered cost of ...

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The solution explains how to calculate the cost of equity

$2.49