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Miller Co. has a weighted average cost of capital of 7.5%. It's cost of equity is...

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Finance

Miller Co. has a weighted average cost of capital of 7.5%. It'scost of equity is 10% and the average yield to maturity on itsbonds is 5%. If the tax rate is 35%, what is Miller's market valuedebt-equity (D/E) ratio? [Choose closest]

A. 0.370

B. 1.00

C. 0.588

D. 1.70

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Miller Co. has a weighted average cost of capital of 7.5%. It'scost of equity is 10% and the average yield to maturity on itsbonds is 5%. If the tax rate is 35%, what is Miller's market valuedebt-equity (D/E) ratio? [Choose closest]A. 0.370B. 1.00C. 0.588D. 1.70

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