Central systems inc desires a weighted average cost of

Reference no: EM13620123

Central Systems, Inc. desires a weighted average cost of capital of 8 percent. Assume that there are no taxes, the firm has a cost of debt of 5 percent and a cost of equity of 10 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

Reference no: EM13620123

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