Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earning
s are growing at a rate of 5%, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is Firm L's cost of equity?
Ted is so apprehensive about the new role that the fear of failure constrains him from exploring his potential. Subconsciously, he's undermined his ability and resists change. His potential for growth and progress is therefore threatened.