Question
A firm wants to create a weighted average cost of capital of 7.2%. the firms cost of equity is 10% and its pre-tax cost of
A firm wants to create a weighted average cost of capital of 7.2%. the firms cost of equity is 10% and its pre-tax cost of debt is 8%. the tax rate is 34%. what does the debt-equity ratio need to be for the firm to achieve its target WACC? (Answer 1.46) i need explanation
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
