Targeted weighted average cost of capital

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Reference no: EM13911770

Blue Inc. desires a weighted average cost of capital of 13.2 percent. The firm has an after-tax cost of debt of 4.8 percent and a cost of equity of 15.2 percent (assume that these costs do not change with the capital structure). What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? Enter your answer rounded to two decimal places

Reference no: EM13911770

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