Determine the debt ratio of the firm

Reference no: EM131974977

Question: A firm has 30M shares issued with a market value of 15€ per share. It has debt issued with a market value of 104.4 M€ and it decides to pay a dividend of 0.5€ per share. According to Modigliani and Miller, determine the debt ratio (D/E) of the firm after the dividend payment. Show your work.

Reference no: EM131974977

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