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Central Systems desires a weighted average cost of capital of 10.16 percent. The firm has an after-tax cost of debt of 3.84 percent and a

Central Systems desires a weighted average cost of capital of 10.16 percent. The firm has an after-tax cost of debt of 3.84 percent and a cost of equity of 12.32 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

A) .37

B) .42

C) .56

D) .34

E) .44

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