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Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8.5 percent. The firm has an aftertax cost of debt of 6.0
Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8.5 percent. The firm has an aftertax cost of debt of 6.0 percent and a cost of equity of 12.0 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital? |
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0.70
2.40
1.71
1.40
0.71
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