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Sage's Dogs, Inc, has a WAC of 12 percent. The company's cost of equity is 15 percent, and its cost of devt is 6 percent. The tax rate is 30 percent. What is Sage's target debt-equity ratio?

1) 0.500

2) 3.401

3) 0.385

4) 0.294

Financial Management, Finance

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  • Reference No.:- M92364832

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