Phil's Carvings, Inc. wants to have a weighted average cost of capital of 9.5 percent. The company has an after-tax cost of debt of 6.5 percent and a cost of capital of 12.75 percent. What debt-equity ratio is needed for the company to achieve its target weighted average cost of capital?

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ANSWER To calculate the debtequity ratio needed for Phils Carvings Inc to achieve its ta... View the full answer