Debbie's Cookies Has a Return on Assets of 12

question 69

Multiple Choice

Debbie's Cookies has a return on assets of 12.6 percent and a cost of equity of 14.8 percent.What is the pretax cost of debt if the debt-equity ratio is .38? Ignore taxes.

• A)5.87 percent
• B)95.29 percent
• C)9.04 percent
• D)7.31 percent
• E)6.81 percent

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Definitions:

Synchondroses

A type of cartilaginous joint where hyaline cartilage joins two bones together, often found in areas of growth in children.

Plantar Flexion

A movement that involves the bending of the foot downwards at the ankle, pointing the toes away from the shin.

Inversion And Eversion

Inversion and eversion refer to movements of the sole of the foot. Inversion involves turning the sole inward, toward the midline of the body, while eversion refers to turning the sole outward, away from the midline.

Feet

The lower part of the leg below the ankle, on which a person stands or walks.