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(5) Phil's Carvings wants to have a weighted average cost of capital of 9.5 percent. The firm has an after-tax cost of debt of 6.5

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(5) Phil's Carvings wants to have a weighted average cost of capital of 9.5 percent. The firm has an after-tax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? (9 points)

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