Hazardous Wastes, Inc. has a cost of equity of 23.2% and a pre-tax cost of debt of 10%. The required return on the assets is 18%. What is the firm's debt-equity ratio based on M&M II with no taxes?
A) .45
B) .50
C) .55
D) .60
E) .65

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The Answer of Hazardous Wastes, Inc. has a cost of equity of 23.2% and a pre-tax cost of debt of 10%. The required return on the assets is 18%. What is the firm's debt-equity ratio based on M&M II with no taxes?
A) .45
B) .50
C) .55
D) .60
E) .65