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Question 5 (Mandatory) (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 8%. The firm's target

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Question 5 (Mandatory) (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 8%. The firm's target weighted average cost of capital is 12% and its tax rate is 35%. What is the firm's target debt-equity ratio? A) 0.85 OB) 0.89 OC) 0.97 D) 0.98 E) 0.92

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