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Your Firm Has a Pre-Tax Cost of Debt of 8

Question 78

Multiple Choice

Your firm has a pre-tax cost of debt of 8% and an unlevered cost of capital of 13%.Your tax rate is 35% and your cost of equity is 15.26%.What is your debt-equity ratio?


A) .61
B) .66
C) .70
D) .74
E) .78

Correct Answer:

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