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Roy & Daughter has a cost of equity of 13.9 percent and a pretax cost of debt of 6.8 percent. The required return on the

Roy & Daughter has a cost of equity of 13.9 percent and a pretax cost of debt of 6.8 percent. The required return on the assets is 12.9 percent. What is the firm's debt-equity ratio based on M&M II with no taxes?

.164

.333

.408

.108

.229

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