Websters watering hole must maintain a weighted average


Webster's Watering Hole must maintain a weighted average cost of capital of 9% to satisfy covenants in the bond indenture. Analysts forecast the after tax cost of debt of 5% and a cost of equity of 11%. What debt-equity ratio must be employed to meet the targeted WACC?

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Financial Management: Websters watering hole must maintain a weighted average
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