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uestion Question 8 0.8 pts Assume a firm is financed with 60% safe debt at a cost of 5%, and 40% equity. The firm has

uestion

Question 8 0.8 pts

Assume a firm is financed with 60% safe debt at a cost of 5%, and 40% equity. The firm has a market value of $12 billion and promises a 14% ($1.68 billion) return. In a world with no taxes, what is the firms price/earnings ratio? Round your answer to the nearest hundredth?

Group of answer choices

8.1

7.3

7.1

3.6

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