Wat does the debt-equity ratio need to be for the firm to


A firm wants to create a weighted average cost of capital of 7.2%. The firm cost of equity is 10% and its pre-tax cost of debt is 8%. The tax rate is 34%. What does the debt-equity ratio need to be for the firm to achieve its target WACC?

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Financial Management: Wat does the debt-equity ratio need to be for the firm to
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