Central systems inc desires a weighted average cost of


Central Systems, Inc. desires a weighted average cost of capital of 7 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 10 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Central systems inc desires a weighted average cost of
Reference No:- TGS01414807

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)