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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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