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35. A company's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is18.6%, and the pretax cost of debt is 9.4%,
35. A company's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is18.6%, and the pretax cost of debt is 9.4%, what is the cost of ordinary share equityassuming a tax rate of 34%? a. 19.90%b. 20.90%c. 21.70%(1. 22.73% Step by Step Solution
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
10th Canadian edition Volume 1
978-0134213101, 134213106, 133855376, 978-0133855371
