Question

Mountain Groves has an unlevered cost of capital of 13.2 percent, a cost of debt of...

Mountain Groves has an unlevered cost of capital of 13.2 percent, a cost of debt of 8.3 percent, and a tax rate of 21 percent. What is the target debt-equity ratio if the targeted cost of equity is 14.5 percent?

.54

.48

.29

.34

.33

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