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Debbie's Cookies has a return on assets of 8.5 percent and a cost of equity of 12.9 percent. What is the pretax cost of debt

Debbie's Cookies has a return on assets of 8.5 percent and a cost of equity of 12.9 percent. What is the pretax cost of debt if the debtequity ratio is .83? Ignore taxes.

		3.38%
		3.20%
		3.55%
		3.70%
		2.91%

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