Problem a ceo wants to maintain a target debt to equity
Problem: A CEO wants to maintain a target debt to equity ratio of 0.25. The overall WACC for the company is 18.6% and the cost of debt is 8.4% before tax.
Required:
Assuming a tax rate of 34%, what return do the stockholders' stock require?
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problem a ceo wants to maintain a target debt to equity ratio of 025 the overall wacc for the company is 186 and the
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