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A firms weighted average cost of capital is 20%. The corporate tax rate is 40% and its cost of debt and equity are 25% and
A firms weighted average cost of capital is 20%. The corporate tax rate is 40% and its cost of debt and equity are 25% and 30% respectively. What is the firms debt to equity ratio?
A. 1.5 | |
B. 0.5 | |
C. 2 | |
D. 2/3 |
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