Down Bedding Has an Unlevered Cost of Capital of 14

Multiple Choice

Down Bedding has an unlevered cost of capital of 14 percent,a cost of debt of 7.8 percent,and a tax rate of 32 percent.What is the target debt-equity ratio if the targeted cost of equity is 15.51 percent?

A) .24
B) .29
C) .36
D) .52
E) .71