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Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted average cost

Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted average cost of capital is 11 percent and its tax rate is 34 percent. What is the firm's target debt-equity ratio? 1.37 .87 .98 1.02 .73

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