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XYZ has a cost of equity of 16 percent and a pretax cost of debt of 10 percent. The firm's target weighted average cost of

XYZ has a cost of equity of 16 percent and a pretax cost of debt of 10 percent. The firm's target weighted average cost of capital is 12 percent and its tax rate is 35 percent. What is the firm's target d ebt-equity ratio

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