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Q. |
Black & White Ltd. Has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target Weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio? |
A. | 0.6203 |
B. | 0.5756 |
C. | 0.5572 |
D. | 0.5113 |
Answer» B. 0.5756 |
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