Targeted weighted average cost of capital

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Reference no: EM131554958

Dominosa, Inc. wants to have a weighted average cost of capital of 8.7 percent. The firm has an aftertax cost of debt of 5 percent and a cost of equity of 11.7 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?

Reference no: EM131554958

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