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Suppose for an agribusiness firm,the leverage ratio is 1.Therate of return on asset is normally distributed random variable with an average expectation of15%, and a

Suppose for an agribusiness firm,the leverage ratio is 1.Therate of return on asset is normally distributed random variable with an average expectation of15%, and a standard deviation of 3%. The cost of borrowing is fixed at 10%, over the term of the loan, the tax rate is 25% and the consumption rate is 60%. Calculate the coefficient of variation for this agribusiness.

a.8%

b.1.8%

c.3%

d.5.6%

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