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EU Corp. would like to have a 10.4 percent weighted average cost of capital. The companys cost of equity is 12 percent, and its pre-tax

EU Corp. would like to have a 10.4 percent weighted average cost of capital. The companys cost of equity is 12 percent, and its pre-tax cost of debt is 8.8 percent. The tax rate is 20 percent. What is the companys target debtequity ratio?

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