Multiple Choice
Sun Sports has an unlevered cost of capital of 11 percent,a cost of debt of 7 percent,and a tax rate of 34 percent.What is the target debt-equity ratio if the targeted levered cost of equity is 12.27 percent?
A) .44
B) .48
C) .51
D) .66
E) .55
Correct Answer:
Verified
Correct Answer:
Verified
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