The Bird Carver has a target WACC of 9.5 percent.The firm has an aftertax cost of debt of 5.4 percent and a cost of equity of 14 percent.What debt-to-equity ratio is needed for the firm to achieve its target WACC?
A) 0) 75
B) 0) 67
C) 1) 10
D) 0) 93
E) 1) 06
Correct Answer:
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