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Brown's Department Store Has a Cost of Equity of 19

Question 20

Multiple Choice

Brown's Department Store has a cost of equity of 19.1 per cent,a pre-tax cost of debt of 8 per cent,and a return on assets of 14 per cent.Ignore taxes.What is the debt-equity ratio?


A) 0.70
B) 0.80
C) 0.75
D) 0.65
E) 0.85

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