What is sage target debt-equity ratio

What is sage target debt-equity ratio

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Reference no: EM131556115

Sage's Dogs, Inc, has a WAC of 12 percent. The company's cost of equity is 15 percent, and its cost of devt is 6 percent. The tax rate is 30 percent. What is Sage's target debt-equity ratio?

1) 0.500

2) 3.401

3) 0.385

4) 0.294

Reference no: EM131556115

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