What debt-equity ratio is needed for the firm

Reference no: EM13261324

Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.3 percent. The firm has an aftertax cost of debt of 5.5 percent and a cost of equity of 11.0 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?

1.45
0.22
0.45
3.24
2.24

Reference no: EM13261324

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What debt-equity ratio is needed for the firm : Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.3 percent. The firm has an aftertax cost of debt of 5.5 percent and a cost of equity of 11.0 percent. What debt-equity ratio is needed for the firm to achieve their target..

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