What will be alabasters cost of equity

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Reference no: EM131461943

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

a) 8.31% b)14.93% c)13.56% d)10.45% e)12.08%

Reference no: EM131461943

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