Multiple Choice
Sun Sports has an unlevered cost of capital of 14.3 percent,a cost of debt of 8.7 percent,and a tax rate of 35 percent.What is the target debt-equity ratio if the targeted levered cost of equity is 16.34 percent?
A) 0.44
B) 0.56
C) 0.51
D) 0.63
E) 0.47
Correct Answer:
Verified
Correct Answer:
Verified
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