Wild Ducks Unlimited Wants to Have a Weighted Average Cost

question 214

Multiple Choice

Wild Ducks Unlimited wants to have a weighted average cost of capital of 8.5 percent. The firm has an after-tax cost of debt of 4.6 percent and a cost of equity of 12 percent. What debt-equity ratio is
Needed for the firm to achieve the targeted weighted average cost of capital?

• A) .66
• B) .72
• C) .77
• D) .84
• E) .90

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Definitions:

Nervousness

A state of restlessness and agitation often accompanied by physical symptoms, typically due to anxiety or tension.

Existentialists

Philosophers who explore and discuss issues related to existence, freedom, and the meaning of life.

Inherently Meaningless

Describes something that lacks intrinsic purpose, value, or significance on its own.

Life Meaning

The significance or purpose an individual ascribes to their life, often a central focus in existential and humanistic therapeutic approaches.