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A company wants to have a weighted average cost of capital of 8.40%. The firm has an after-tax cost of debt of 4.8% and a

A company wants to have a weighted average cost of capital of 8.40%. The firm has an after-tax cost of debt of 4.8% and a cost of equity of 12%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? (Hint: Wd + Ws = 1) 1.00 0.87 1.13 1.26 1.39

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