Miguel wants his weighted average cost of capital to be 10%. He can borrow at 7% but

Question:

Miguel wants his weighted average cost of capital to be 10%. He can borrow at 7% but all his equity investors are looking for a return of 20%. What should his debt/equity ratio be?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...

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