Weston Mines Has a Cost of Equity of 20

Multiple Choice

Weston Mines has a cost of equity of 20.8 percent,a pretax cost of debt of 9.4 percent,and a return on assets of 17.1 percent.Ignore taxes.What is the debt-equity ratio?

A) 0.39
B) 0.41
C) 0.48
D) 0.56
E) 0.62