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SoundTech Company wants to have a weighted average cost of capital of 7.4%. The firm has an after-tax cost of debt of 5.6% and a

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SoundTech Company wants to have a weighted average cost of capital of 7.4%. The firm has an after-tax cost of debt of 5.6% and a cost of equity of 12.4%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? C 2.50 O 2.34 02.10 o 2.78 1.92

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