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The Spartan Co. has an unlevered cost of capital of 11.6 percent, a cost of debt of 7.9 percent, and a tax rate of 35
The Spartan Co. has an unlevered cost of capital of 11.6 percent, a cost of debt of 7.9 percent, and a tax rate of 35 percent. What is the target debt-equity ratio if the targeted levered cost of equity is 12.6 percent?
A. .44
B. .49
C. .42
D. .56
E. .62
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