Business
Business, 19.08.2020 03:01, lavander9303

Central Systems desires a weighted average cost of capital of 12.7 percent. The firm has an aftertax cost of debt of 4.8 percent and a cost of equity of 15.4 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? a. 0.37
b. 0.44
c. 0.42
d. 0.56
e. 0.34

answer
Answers: 3

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Central Systems desires a weighted average cost of capital of 12.7 percent. The firm has an aftertax...

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