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Wild Ducks Unlimited Wants to Have a Weighted Average Cost

Question 136

Multiple Choice

Wild Ducks Unlimited wants to have a weighted average cost of capital of 8.5 percent. The firm has an after-tax cost of debt of 4.6 percent and a cost of equity of 12 percent. What debt-equity ratio is
Needed for the firm to achieve the targeted weighted average cost of capital?


A) .66
B) .72
C) .77
D) .84
E) .90

Correct Answer:

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