Levered at debt to value ratio

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Reference no: EM13875250

Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the cost of equity for an all equity firm is 12%. What will be Alabaster's cost of equity? (Please show all work and show the answer as a percentage)

Reference no: EM13875250

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Levered at debt to value ratio : Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the cost of equity for an all equity firm is 12%. What will be Alabaster's cost of equity?

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