Phil's Carvings, Inc

question 13

Multiple Choice

Phil's Carvings, Inc. 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) 0.33
• B) 0.40
• C) 0.50
• D) 0.60
• E) 0.67

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Definitions:

Routers

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Motherboard Form Factor

The standard design specification of a motherboard, determining its dimensions, power supply type, and physical layout of components.

High-End Cooling

Advanced cooling solutions designed to efficiently manage the heat output of high-performance computer systems and components.

SSD

Solid-State Drive, a type of data storage device that uses integrated circuit assemblies as memory to store data persistently, offering faster access time and lower latency compared to traditional hard disk drives (HDDs).