Wix Inc. wants to have a weighted average cost of capital of 8.5 %. The firm has an after-tax cost of debt of 4.6 % and a cost of equity of 12 %. What debt-equity ratio is needed for the firm to achieve the targeted weighted average cost of capital?

Select one: a. 0.84 b. 0.66 c. 0.77 d. 0.90 e. 0.72