Central Systems desires a weighted average cost of capital of 12.7 percent. The firm has an aftertax cost of debt of 4.8 percent and a cost of equity of 15.4 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital? a. 0.37
b. 0.44
c. 0.42
d. 0.56
e. 0.34

e. 0.34

Explanation:

Let debt be $D

Equity be $E

Total=(D+E)

WACC = Respective cost * Respective weight

12.7 = {(D*4.8)/(D+E)} + {(15.4*E)/(D+E)}

12.7*(D+E)=4.8D+15.4E

12.7D+12.7E=4.8D+15.4E

D=(15.4-12.7)E /(12.7-4.8)

D = 2.7E / 7.9

D = 0.0341772

D = 0.34 E

Hence, debt-equity ratio=debt/equity  

=0.34

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

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