The firms cost of equity is 145 percent and its pre-tax


A firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt-equity ratio need to be for the firm to achieve its target WACC?

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Finance Basics: The firms cost of equity is 145 percent and its pre-tax
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