Overall or weighted average-stockholders required return

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Cost of Capital. The treasury operation of Douglas Co. has provided the following information to Business Development so they can estimate their Cost of Capital (Overall or Weighted Average) for applications in appropriation requests: Cost of Debt Pre-tax 6% Marginal Tax Rate 40% Effective Tax Rate 20% Cost of Equity (Stockholders Required Return) 15% Cost of Capital 11.2% What is Douglas Co’s Debt to Capital Ratio? a. 67% b. 63% c. 33% d. 37% e. none of the above

Reference no: EM131188098

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