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A company wants to have a weighted average cost of capital of 8.4%. The firm has an after-tax cost of debt of 5.5% and a

A company wants to have a weighted average cost of capital of 8.4%. The firm has an after-tax cost of debt of 5.5% and a cost of equity of 13.8%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? (Hint: Ws + Wd = 1)

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