Bigelow,Inc. 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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The Answer of Bigelow,Inc. 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