Design Interiors has a cost of equity of 18.6 percent and a pretax cost of debt of

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Design Interiors has a cost of equity of 18.6 percent and a pretax cost of debt of 9.7 percent. The firm's target weighted average cost of capital is 12 percent and its tax rate is 35 percent. What is the firm's target debt-equity ratio?

(A) 0.81

(B) 0.87

(D) 1.02

(E) 1.16

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Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

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Posted Date: Dec 12, 2022 06:02 AM

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Design Interiors has a cost of equity of 18.6 percent and a pretax cost of debt of

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Managerial Accounting

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