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King Fisher Aviation has a target capital structure of 72 percent common stock and 28 percent debt. Their cost of equity is 12 percent and

King Fisher Aviation has a target capital structure of 72 percent common stock and 28 percent debt. Their cost of equity is 12 percent and the cost of debt is 5 percent. The tax rate is 40 percent. WACC is 9.48%. Evaluate King Fisher's target capital structure. What are your recommendations? Consider the impact of taxes and explain your reasoning. Please provide analysis do not calculate WACC as it is already given.

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