Question
Ripon Inc. has a cost of equity of 16 percent and a pre-tax cost of debt of 8 percent. The firm's target weighted average cost
Ripon Inc. has a cost of equity of 16 percent and a pre-tax cost of debt of 8 percent. The firm's target weighted average cost of capital is 11 percent and its tax rate is 21 percent. What is the firm's debt-equity ratio (D/E)? 0.77 1.01 0.85 0.92
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
