Firm cost of equity-hewler corp

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Hewler Corp has debt with both a book and a market value of $200,000. This debt has a coupon rate of 6% and pays interest annually. The expected earnings before interest and taxes are $30,000, the tax rate is 30%, and the unlevered cost of capital is 8%. What is the firm's cost of equity? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit % sign in your response. if your answer is 72.92%, enter 72.92)

Reference no: EM132660557

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