The Spartan Co

question 79

Multiple Choice

The Spartan Co.has an unlevered cost of capital of 11%,a cost of debt of 8%,and a tax rate of 35%.What is the target debt-equity ratio if the targeted cost of equity is 12.5%?

• A).44
• B).49
• C).51
• D).66
• E).77

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Definitions:

Biologically Influenced

Referring to traits, characteristics, or behaviors that are shaped by genetic, neurological, or physiological factors.

Socially Influenced

The effect that the presence, thoughts, or actions of others have on an individual's beliefs, feelings, or actions.

Biologically Influenced

Characteristics or behaviors that are affected or determined by genetic, biochemical, or physiological factors.

Androgyny

Possessing both male and female characteristics.