Weston Mines Has a Cost of Equity of 19

question 91

Multiple Choice

Weston Mines has a cost of equity of 19.8 percent, a pre-tax cost of debt of 9.4 percent, and a return on assets of 17.1 percent. Ignore taxes. What is the debt-equity ratio?

• A) 0.35
• B) 0.41
• C) 0.47
• D) 0.56
• E) 0.62