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Problem regarding the debt-equity ratio

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Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 11 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

  • .84
  • .50
  • .57
  • .77
  • .67

Reference no: EM131082502

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