Bigelow SpA Has a Cost of Equity of 13

question 40

Multiple Choice

Bigelow SpA has a cost of equity of 13.56% and a pre-tax cost of debt of 7%.The required return on the assets is 11%.What is the firm's debt-equity ratio based on MM Proposition II with no taxes?

• A).60
• B).64
• C).72
• D).75
• E).80

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