Phil's Carvings Wants to Have a Weighted Average Cost of Capital

question 19

Multiple Choice

Phil's Carvings wants to have a weighted average cost of capital of 9%.The firm has an after-tax cost of debt of 5 %and a cost of equity of 11%.What debt-equity ratio is needed for the firm to
Achieve its targeted weighted average cost of capital?

• A).33
• B).40
• C).50
• D).60
• E).67

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Definitions:

Fear Of Infection

An apprehension or dread about being exposed to pathogens or contracting an illness.

Mourning Process

The series of emotional and psychological reactions that follow the loss of a loved one.

Bereaved

Experiencing the process of grief and mourning following the death of a loved one.

Resolution Of Grief

The process of working through the emotional responses to loss, leading to a state of acceptance.