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%?
A) .44
B) .49
C) .51
D) .56
E) .62
Correct Answer:

Verified
Correct Answer:
Verified
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