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ABC has an unlevered cost of capital (Ra) of 15.4%, a cost of debt of 7.5%and a tax rate of 0%. What is the target
ABC has an unlevered cost of capital (Ra) of 15.4%, a cost of debt of 7.5%and a tax rate of 0%. What is the target debt-equity ratio if the targeted cost of equity (Rs) is 20%?
Enter you answer in percentages rounded off to two decimal points.
Please show in excel if you can. Thanks!
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