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Pearson farm has a cost of equity of 11.9 percent and a pre-tax cost 51. Pearson Farm has a cost of equity of 11.9 percent

Pearson farm has a cost of equity of 11.9 percent and a pre-tax cost

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51. Pearson Farm has a cost of equity of 11.9 percent and a pre-tax cost of debt of 9 percent. The required return on the assets is 11 percent. What is the firm's debt- equity ratio based on M&M II with no taxes? A. 0.40 B. 0.45 C. 0.55

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