Question
Kountry Kitchen has a cost of equity of 12.8 percent, a pretax cost of debt of 5.5 percent, and the tax rate is 35 percent.
Kountry Kitchen has a cost of equity of 12.8 percent, a pretax cost of debt of 5.5 percent, and the tax rate is 35 percent. If the company's WACC is 9.25 percent, what is its debtequity ratio?
Multiple Choice
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1.60
-
.63
-
.76
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.38
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1.60
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
