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Calculate the debt-equity ratio-denc corporation

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Reference no: EM132632731

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.

Reference no: EM132632731

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