A firm with a debt-to-equity ratio (D/E) of 0.5 , return on assets of 18%, and return on debt of 12% will have a return on equity of which of the following? a. 16.00% b. 20.00% c. 15.00% d. 21.17% e. 16.67% Which of the following statements is correct? a. Increasing a company's debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the company's WACC. b. None of the above c. The capital structure that maximizes the common share price is also the capital structure that maximizes earnings per share. d. The capital structure that maximizes the common share price is also the capital structure that minimizes the WACC. e. Increasing personal tax rate but decreasing corporate tax rate would encourage companies to increase their debt ratios