Multiple Choice
Thompson Feed has a cost of equity of 11.9% and a pre-tax cost of debt of 9%. The required return on the assets is 11%. What is the firm's debt-equity ratio based on M&M II with no taxes?
A) .40
B) .45
C) .50
D) .55
E) .60
Correct Answer:
Verified
Correct Answer:
Verified
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