Question
Phil's Carvings wants to have a Weighted Average Cost of Capital of 9.50 percent. The firm has an after-tax cost of debt of 6.5 percent
Phil's Carvings wants to have a Weighted Average Cost of Capital of 9.50 percent. The firm has an after-tax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. What Debt-Equity ratio is needed for the firm to achieve its targeted WACC?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
