Salem Mills has an unlevered cost of capital of 14%, a cost of debt of 9%, and a tax rate of 34%. What is the target debt-equity ratio if the targeted cost of equity is 16.5%?

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The Answer of Salem Mills has an unlevered cost of capital of 14%, a cost of debt of 9%, and a tax rate of 34%. What is the target debt-equity ratio if the targeted cost of equity is 16.5%?

Salem Mills Has an Unlevered Cost of Capital of 14