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Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. The firm's target weighted average cost of capital
Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. The firm's target weighted average cost of capital is 12% and its tax rate is 40%. What is the firm's target debt-equity ratio? OA) 0.92 B) 0.89 C) 0.98 OD) 0.85 E) 0.97
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