Question: Question 8 (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

Question 8 (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 40%. What is the firm's target debt-equity ratio? OA) 0.97 B) 0.89 C) 0.92 D) 0.85 (E) 0.98 Page 8 of 19 Next Page Previous Pags

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