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Bigelow, Inc. has a cost of equity of 13.00% and a pre-tax cost of debt of 7%. The required return on the assets is 11%.
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Bigelow, Inc. has a cost of equity of 13.00% and a pre-tax cost of debt of 7%. The required return on the assets is 11%. What is the firm s debt-equity ratio based on MM Proposition II with no taxes?
a. 0.80
b. 0.64
c. 0.75
d. 0.50
e. 0.72
Bigelow, Inc. has a cost of equity of 13.00% and a pre-tax cost of debt of 7%. The required return on the assets is 11%. What is the firm s debt-equity ratio based on MM Proposition II with no taxes?
| a. | 0.80 | |
| b. | 0.64 | |
| c. | 0.75 | |
| d. | 0.50 | |
| e. | 0.72 |
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