Question
Miller Co. has a weighted average cost of capital of 7.5%. It's cost of equity is 10% and the average yield to maturity on its
Miller Co. has a weighted average cost of capital of 7.5%. It's cost of equity is 10% and the average yield to maturity on its bonds is 5%. If the tax rate is 35%, what is Miller's market value debt-equity (D/E) ratio? [Choose closest]
- A.0.588
- B.1.00
- C.0.370
- D.1.70
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
