Question
The DENC corporation has the unlevered cost equity of 10%.The company wants to expand its operation by issuing new debt.If the cost of debt for
The DENC corporation has the unlevered cost equity of 10%.The company wants to expand its operation by issuing new debt.If the cost of debt for the company is 6% and the corporate tax rate is 30%.What must be the debt-equity ratio of the company if the targeted cost of equity is 12%
Calculate the debt-equity(D/E)ratio.
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
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