ge 2: Question 12 (Mandatory) (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 8%. The firm's target weighted average cost of capital is 12% and its tax rate is 35%. What is the firm's target debt-equity ratio? OA) 0.85 nge 3: 3 OB) 0.97 age 4: C) 0.89 4 D) 0.98 Page 5: E) 0.92 5