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Broccoli Inc. has a cost of equity of 16 percent and a pre-tax cost of debt of 4 percent. The firm's target weighted average cost
Broccoli Inc. has a cost of equity of 16 percent and a pre-tax cost of debt of 4 percent. The firm's target weighted average cost of capital is 12 percent and its tax rate is 21 percent. What is the firm's debt-equity ratio (D/E)?
0.45 | ||
0.67 | ||
0.89 | ||
1.06 |
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