Central systems inc desires a weighted average cost of, Ask an Expert

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Central Systems, Inc. desires a weighted average cost of capital of 8 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 11 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

1.50
1.40
1.67
1.60
1.33

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