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You want to find your target capital structure. Your company's weighted average cost of capital is 12.5%. The cost of equity is 15% and the cost of debt is 8%. Given a tax rate of 35%, what is your target debt-equity ratio?

a. 0 .34

b. 0 .68

c. 0 .17

d. 0 .25

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  • Reference No.:- M946477

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