The tax rate is 30 percent what is sages target debt-equity


Sage's Dogs, Inc, has a WAC of 12 percent. The company's cost of equity is 15 percent, and its cost of devt is 6 percent. The tax rate is 30 percent. What is Sage's target debt-equity ratio?

1) 0.500

2) 3.401

3) 0.385

4) 0.294

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The tax rate is 30 percent what is sages target debt-equity
Reference No:- TGS02351661

Expected delivery within 24 Hours