Question: Question 1 (Mandatory) (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. The firm's target

Question 1 (Mandatory) (2 points) Design Interiors has a cost of equity of 18.6% and a pretax cost of debt of 7%. The firm's target weighted average cost of capital is 12% and its tax rate is 40%. What is the firm's target debt-equity ratio? O A) 0.85 B) 0.89 C) 0.98 D) 0.92 E) 0.97

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