What is the firms target debt-equity ratio


Green and Red has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the firms target debt-equity ratio
Reference No:- TGS0727060

Expected delivery within 24 Hours