The flavr company's cost of equity is 16.88%.
What is equity?
Equity in the context of finance refers to ownership of assets with potential liabilities such as debts. For accounting purposes, equity is calculated by deducting liabilities from of the worth of the assets. The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 as well as owes $10,000 just on loan used to purchase the vehicle. A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined schedule. Assets are referred to as being "underwater" or "upside-down" when the liabilities attached to them exceed the value of the asset.
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