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Phil's Carvings, Inc. wants to have a WACC of 9%. The firm has an after-tax...

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Accounting

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Phil's Carvings, Inc. wants to have a WACC of 9%. The firm has an after-tax cost of debt (i.e., ra(1-t)) of 5% and a cost of equity (re) of 11%. Assume the firm is financed with only debt and equity. What debt-equity ratio (D/E) is needed for the firm to achieve its targeted WACC. 0.33 0.40 0.50 0.67

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