Question: 7. Current Cap. Structure Proposed Cap. Structure Assets $ 15 million $15 million Debt $0 $6 million Shares O/S 600,000 ? Bond Int. Rate n/a

7. Current Cap. Structure Proposed Cap. Structure

Assets $ 15 million $15 million

Debt $0 $6 million

Shares O/S 600,000 ?

Bond Int. Rate n/a 10%

what is the ROE during a recession for the current capital structure?

A. 9.27 percent

B. 11.50 percent

C. 13.33 percent

D. 15.55 percent

E. 17.58 percent

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