Multiple Choice
Roy's Welding has a cost of equity of 14.1 percent and a pretax cost of debt of 7.7 percent. The required return on the assets is 13.2 percent. What is the debt-equity ratio based on M&M II with no taxes?
A) .164
B) .217
C) .408
D) .108
E) .583
Correct Answer:
Verified
Correct Answer:
Verified
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