What must the debt-equity ratio of the firm

Reference no: EM13296412

A firm desires a WACC of 8 percent. Its cost of equity is 12.6 percent and its pre-tax cost of debt is 6.9 percent. The firm does not issue preferred stock. The tax rate is 35 percent. What must the debt-equity ratio of the firm be if it is to achieve its target WACC?

Reference no: EM13296412

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