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CTP · Question #609
CTP Question #609: Real Exam Question with Answer & Explanation
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Question
- (Topic 7) Refer to the following information about a company at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. What is the company's long-term debt to total capitalization ratio?
Options
- A0.44
- B0.67
- C0.73
- D0.78
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