Targeted weighted average cost of capital, Accounting Basics

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Targeted weighted average cost of capital

Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9%. The firm has an after-tax cost of debt of 5 %and a cost of equity of 11%. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

A. 33

B. 40

C. 50

D. 60

E. 67

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Accounting Basics: Targeted weighted average cost of capital

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Accounting Basics: Targeted weighted average cost of capital

Reference No:- TGS0517359

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Identify the target market for the company and the selection

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Targeted weighted average cost of capital

Reference No:- TGS0517359

Recent Questions Asked Accounting Basics

Q : Identify the target market for the company and the selection

Q : How does development affect money demand and interest rates

Q : Invest and manage own fleet of trucks

Q : The major strategic issues that the industry faces

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Q : What obligations is moody-s referring to

Q : Problem regarding weighted average cost of capital

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