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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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