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Merrimack has an unlevered cost of capital of 10 percent, a pretax cost of debt of 8 percent, and a tax rate of 34 percent.
Merrimack has an unlevered cost of capital of 10 percent, a pretax cost of debt of 8 percent, and a tax rate of 34 percent. What is the target debt-equity ratio if the targeted levered cost of equity is 12.27 percent? 1.32 1.48 1.56 1.64 1.72
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