Phils carvings inc wants to have a weighted average cost of

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Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9%. The firm has an after-tax cost of debt of 5 %and a cost of equity of 11%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

A. 33

B. 40

C. 50

D. 60

E. 67

Reference no: EM13394421

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