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Phil's Carvings wants to have a weighted average cost of capital of 8%. The firm has an after-tax cost of debt of 5% and a
Phil's Carvings wants to have a weighted average cost of capital of 8%. The firm has an after-tax cost of debt of 5% and a cost of equity of 12%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
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