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Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 5 percent and

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Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 13 percent. What debt- equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? 1.00 .83 1.17 .90 01.10

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