A Levered Firm Has a Pretax Cost of Debt of 8.5

question 30

Multiple Choice

A levered firm has a pretax cost of debt of 8.5 percent and an unlevered cost of capital of 14 percent.The tax rate is 35 percent and the cost of equity is 15.89 percent.What is the debt-to-equity ratio?

• A).55
• B).45
• C).51
• D).47
• E).53

---

Definitions:

Needs Analysis

A process used to identify gaps between current and desired performance or outcomes, often used in organizational and training contexts.

Training And Development

The process of enhancing the skill set and knowledge of employees through various educational methods.

Performance Problems

Issues or deficiencies in the execution of tasks in the workplace that can affect overall productivity and efficiency.

Needs Analysis

The process of determining gaps in performance or skills among employees or teams, which then informs the development of targeted training programs.