M&M Proposition 2: Nullaboor Ltd has a WACC of 11%, a cost of debt of 8%, and a cost of equity of 12%. What must the debt-to-equity ratio be?
A) 1/2
B) 1/4
C) 1/6
D) None of the above.

Question

Quizplus · Accepted Answer

The Answer of M&M Proposition 2: Nullaboor Ltd has a WACC of 11%, a cost of debt of 8%, and a cost of equity of 12%. What must the debt-to-equity ratio be?
A) 1/2
B) 1/4
C) 1/6
D) None of the above.

M&M Proposition 2: Nullaboor Ltd Has a WACC of 11