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What is the firm debt-equity ratio based on m and m ii

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Thompson Feed has a cost of equity of 11.9 percent and a pre-tax cost of debt of 9 percent. The required return on the assets is 11 percent. What is the firm's debt-equity ratio based on M&M II with no taxes?

A. .40

B. .45

C. .50

D. .55

E. .60

Reference no: EM131140490

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