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Central Systems desires a weighted average cost of capital of 12 percent. The firm has an aftertax cost of debt of 5.4 percent and a

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Central Systems desires a weighted average cost of capital of 12 percent. The firm has an aftertax cost of debt of 5.4 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? .56 2.06 1.78 can 25 Question 5 8 points Save Answer You want to purchase some shares of Farms stock but need a 14.5 percent rate of return to compensate for the perceived risk. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant $1.25 annual dividend per share? 59.38 59.11 $8.62 58.47 59.26

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