Financial Accounting

1: The relationship between the cost of equity and financial leverage in accordance with MM proposition II can be expressed by
A.

R = Equity /100

B.

 R = (Equity / Debt) x 100

C.

rE = r0 + D / E (r0 - rD)(1 - Tc)

D.

R = Equity / Income

 

Answer : B

Explanation :

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Option: A

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