Multiple Choice
Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent.The firm's target weighted average cost of capital is 11 percent and its tax rate is 34 percent.What is the firm's target debt-equity ratio?
A) 1.37
B) .87
C) .98
D) 1.02
E) .73
Correct Answer:
Verified
Correct Answer:
Verified
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