Corporate Finance
Corporate Finance
12th Edition
ISBN: 9781259918940
Author: Ross, Stephen A.
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 7QAP
Summary Introduction

Adequate information:

WACC = 9.10%

Cost of equity Ke = 11%

Cost of debt Kd = 6.4%

Tax rate t = 21%

To compute: Debt-equity ratio for the company F.

Introduction: The Debt-to-equity ratio refers to the proportion of debt and equity in the capital structure of the company.

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