Question
A firm has a WACC equal to 11.5 percent, the pretax cost of debt is 6.5 percent and the cost of equity is 15 percent.
A firm has a WACC equal to 11.5 percent, the pretax cost of debt is 6.5 percent and the cost of equity is 15 percent. The tax rate is 35%. Given these figures, what is the firm's debt-equity ratio?
a.0.65
b.0.22
c.0.48
d.0.50
e.0.72
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
