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Central Systems,Inc

question 34

Multiple Choice

Central Systems,Inc.desires a weighted average cost of capital of 8 percent.The firm has an aftertax cost of debt of 5.4 percent and a cost of equity of 15.2 percent.What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

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Definitions:

Exchange

The act of trading goods, services, or ideas between two parties.

Core Tactic

The primary or most essential strategy used to achieve an objective.

Consultation

The process of seeking expertise and advice from others to inform decision-making or to enhance understanding.

Inspirational Appeal

A persuasive tactic that aims to motivate or inspire others by appealing to their emotions and values.

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