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Central Systems desires a weighted average cost of capital of 12 percent . The firm has a before-tax cost of debt of 5 percent and

Central Systems desires a weighted average cost of capital of 12 percent. The firm has a before-tax cost of debt of 5 percent and a cost of equity of 15.2 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital if the tax rate is 20%?


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