Question

The DENC Corporation has the unlevered cost equity of 10%. The company wants to
expand its operation by issuing new debt. If the cost of debt for the company is 6% and
the corporate tax rate is 30%. What must be the debt-equity ratio of the company if the
targeted cost of equity is 12%?
Calculate the debt-equity (D/E) ratio.
(A)The debt-equity (DE) ratio is 0.50
(B) The debt-equity (D E) ratio is 0.60
(C) The debt-equity (D/E) ratio is 2.80
(D) The debt-equity (D E) ratio is 0.71
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Answer​

Answer 1

Answer:

a is the answer of question