Bigelow Has a Levered Cost of Equity of 14

question 6

Multiple Choice

Bigelow has a levered cost of equity of 14.29 percent and a pretax cost of debt of 7.23 percent.The required return on the assets is 11 percent.What is the firm's debt-equity ratio based on MM Proposition II with no taxes?

• A).67
• B).87
• C).72
• D).75
• E).81

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