Down Bedding Has an Unlevered Cost of Capital of 14

question 73

Multiple Choice

Down Bedding has an unlevered cost of capital of 14 percent,a cost of debt of 7.8 percent,and a tax rate of 32 percent.What is the target debt-equity ratio if the targeted cost of equity is 15.51 percent?

• A).24
• B).29
• C).36
• D).52
• E).71

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Definitions:

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes.

Sporophyte

The diploid phase in the life cycle of plants and algae that produces spores through meiosis, alternating with the gametophyte phase.

Rhizoids

Thread-like structures in non-vascular plants, fungi, and algae that absorb water and nutrients and anchor the organism to a substrate.

Nonvascular Plants

Bryophytes, such as mosses and liverworts, that have no vascular tissue and either occur in moist locations or have special adaptations for living in dry locations.