Multiple Choice
The Spartan Co.has an unlevered cost of capital of 11%,a cost of debt of 8%,and a tax rate of 35%.What is the target debt-equity ratio if the targeted cost of equity is 12.5%?
A) .44
B) .49
C) .51
D) .66
E) .77
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q37: Which of the following will tend to
Q53: The Winter Wear Company has expected earnings
Q76: The proposition that the value of a
Q77: A firm has $60,000 of debt outstanding
Q78: Your firm has a pre-tax cost of
Q80: MM Proposition II is the proposition that:<br>A)supports
Q82: A firm has a debt-to-equity ratio of
Q82: Thompson & Thomson is an all equity
Q84: A firm has debt of $10,000,equity of
Q146: Walter's Distributors have a cost of equity