The Bird Carver has a target WACC capital of 9 percent.The firm has an aftertax cost of debt of 6 percent and a cost of equity of 13 percent.What debt-to-equity ratio is needed for the firm to achieve its target WACC?
A) .75
B) .67
C) 1.33
D) .93
E) 1.08
Correct Answer:
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