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A company wants to achieve a weighted average cost of capital of 8.68%. The company has a before-tax cost of debt of 6.78% and a
A company wants to achieve a weighted average cost of capital of 8.68%. The company has a before-tax cost of debt of 6.78% and a cost of equity of 10.58%. If the tax rate is 23%, what debt-to-equity ratio is needed for the company to achieve its target weighted average cost of capital?
0.494
0.508
0.522
0.535
0.549
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