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The Spartan Co. has an unlevered cost of capital of 11%, a cost of debt of 8%, a...
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The Spartan Co. has an unlevered cost of capital of 11%, a cost of debt of 8%, and a tax rate of 35%. What should be the firm’s target debt-equity ratio, based on M&M II with taxes, if the targeted cost of equity is 12%?
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