Business, 14.05.2021 16:00 dondre54

A firm wants to create a weighted average cost of capital (WACC) of 12 percent. The firm's cost of equity is 16 percent and its pre-tax cost of debt is 6 percent. The tax rate is 20 percent. What does the debt-equity ratio (D/E) need to be for the firm to achieve its target WACC

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A firm wants to create a weighted average cost of capital (WACC) of 12 percent. The firm's cost of e...