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Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8.3 percent. The firm has an aftertax cost of debt of 6.1
Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8.3 percent. The firm has an aftertax cost of debt of 6.1 percent and a cost of equity of 12.2 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital? 1.56 0.56 2.77 1.77 0.89 |
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