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Question 6 (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. The firm's target
Question 6 (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. 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) 0.98 B) 0.92 C) 0.89 D) 0.97 E) 0.85
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