A Firm Wants to Create a WACC of 11

question 91

Multiple Choice

A firm wants to create a WACC of 11.2 percent.The firm's cost of equity is 16.8 percent and its pretax cost of debt is 8.7 percent.The tax rate is 35 percent.What does the debt-equity ratio need to be for the firm to achieve its target WACC?

• A).86
• B).67
• C)1.04
• D).94
• E)1.01

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To express the same idea or fact in different words, often for clarity or emphasis.

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The body's reaction to a treatment, indicating the treatment's effectiveness in addressing a health condition.