What debt-equity ratio is needed for the firm

Reference no: EM13282876

Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.2 percent. The firm has an aftertax cost of debt of 6.4 percent and a cost of equity of 12.8 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?

2.29

0.64

0.78

1.29

1.78

Reference no: EM13282876

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