Multiple Choice
Bigelow has a levered cost of equity of 14.29 percent and a pretax cost of debt of 7.23 percent.The required return on the assets is 11 percent.What is the firm's debt-equity ratio based on MM Proposition II with no taxes?
A) .67
B) .87
C) .72
D) .75
E) .81
Correct Answer:
Verified
Correct Answer:
Verified
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