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Bobs Computers cost of equity is 11 percent, and its after-tax cost of debt is 3 percent. What D/E ratio is required for Bobs Computers
Bobs Computers cost of equity is 11 percent, and its after-tax cost of debt is 3 percent. What D/E ratio is required for Bobs Computers to have WACC of 9 percent?
A.
There is not enough information to find the required D/E ratio
B.
0.50
C.
0.33
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