What debt-equity ratio is needed for the firm

What debt-equity ratio is needed for the firm

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Reference no: EM132014483

Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.1%. The firm has an after-tax cost of debt of 4.8% and a cost of equity of 10.9%.

What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? (Round answer to 4 decimal places, round intermediate calculations to 5 decimal places)

Reference no: EM132014483

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