Question
Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.1%. The firm has an after-tax cost of debt of 4.8% and
Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.1%. The firm has an after-tax cost of debt of 4.8% and a cost of equity of 10.9%.
What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?(Round answer to 4 decimal places, round intermediate calculations to 5 decimal places)
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
