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Question:
LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian Skiers, all of its beds are always booked in he winter season and there are, on average, 1,514 skiers in the village. On average, skiers stay in LaVilla for 7 days.
How many skiers are leaving LaVilla, on average, per day?
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The Mouse Trap has a cost of equity of 16.5 percent and a pre-tax cost of debt of 7.4 percent. The firm's target weighted average cost of capital is 11.5 percent and its tax rate is 34 percent. What is the firm's target debt-equity ratio?
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