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Cwds613 Cwds613
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M&M Co. has the following characteristics: perpetual EBIT of $25,000, zero financial distress costs, unlevered cost of equity = 15%, cost of levered equity 20%, before-tax cost of debt = 10%, and the tax rate is 35%. If the value of M&M Co. is $140,000, then the D/E ratio of M&M Co. is

▸ 1.8270.

▸ 0.2923.

▸ 0.5473.

▸ 3.4211.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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mlwpcdmlwpcd
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Cwds613 Author
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Smart ... Thanks!
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Brilliant
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Thanks for your help!!
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