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The Border Crossing has no debt and a cost of capital of 12.2 percent. The shareholders would prefer to earn rate of return of 16.4
The Border Crossing has no debt and a cost of capital of 12.2 percent. The shareholders would prefer to earn rate of return of 16.4 percent. What debt-equity ratio will be required to meet the shareholder's preference if the firm projects a 20% tax rate and can borrow at 6.2 percent? Answer 88% show steps
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