A company wants to achieve a weighted average cost of capital of 8.92%. The company has a before-tax cost of debt of 7.02% and a cost of equity of 10.82%. If the tax rate is 24%, what debt-to-equity ratio is needed for the company to achieve its target weighted average cost of capital? 0.490 0.504 0.517 0.530 0.543 A company needs to purchase equipment for a project with total cost of $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually in perpetuity. The company has a debt-to-assets ratio of 42.00% using market values. The firm's cost of equity is 14.00%, its pre-tax cost of debt is 9.00%, and the flotation costs of debt and equity are 4.30% and 10.10%, respectively. The tax rate is 34%. Assume the project is of similar risk to the firm's existing operations. What is the weighted average flotation cost for the company? 7.66% 7.86% 8.05% 8.24% 8.43%