Leverage and capital structure

Reference no: EM1336756

Triangle Enterprises has no debt but can borrow at 9 percent. The firm's WACC is currently 14.7 percent and there is no corporate tax. If the firm converts to 70 percent debt, what will its cost of equity be?

a) 20.67 percent
b) 22.95 percent
c) 24.47 percent
d) 26.39 percent
e) 28.00 percent

Reference no: EM1336756

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