Multiple Choice
The Spartan Co.has an unlevered cost of capital of 11.6 percent,a cost of debt of 7.9 percent,and a tax rate of 23 percent.What is the target debt-equity ratio if the targeted levered cost of equity is 12.6 percent?
A) .44
B) .39
C) .35
D) .56
E) .53
Correct Answer:
Verified
Correct Answer:
Verified
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