The firm pays no taxes what is acetates debt-equity


Acetate, Inc., has equity with a market value of $23.8 million and debt with a market value of $11.9 million. The cost of debt is 8 percent per year. Treasury bills that mature in one year yield 4 percent per year, and the expected return on the market portfolio is 10 percent. The beta of Acetate’s equity is 1.23. The firm pays no taxes. What is Acetate’s debt-equity ratio??

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Financial Management: The firm pays no taxes what is acetates debt-equity
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