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

question 9

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:

Learning Disability

A neurodevelopmental disorder that affects a person's ability to learn specific academic skills, impacting reading, writing, or mathematics.

Brain Activity

The functions and neurological processes occurring within the brain, including thoughts, emotions, and coordination of bodily movements.

Scientific Methods

Systematic procedures for collecting and analyzing data, forming hypotheses, and testing predictions, fundamental to the acquisition of new knowledge.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a central mechanism of evolution.