Question
The Outlet Mall has a cost of equity of 16.8 percent, a pretax cost of debt of 8.1 percent, and a return on assets of
The Outlet Mall has a cost of equity of 16.8 percent, a pretax cost of debt of 8.1 percent, and a return on assets of 14.5 percent. Ignore taxes. What is the debtequity ratio?
A. 2.38
B. .45
C. .36
D. 2.78
E. .42
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
