Cade's Furnishings has a debt-equity ratio of 0.97 and a tax rate of 21 percent....
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Cade's Furnishings has a debt-equity ratio of 0.97 and a tax rate of 21 percent. What is the company's overall required rate of return? Required return on debt is 13.18% Return on equity is 11%.
The answer is 10.71
Would you please walk me through the steps so that I can reproduce this question in excel, please? I'm trying to understand why I got it wrong before I get a new set of questions. Someone already answered this question for me last night. Thank you anyway though! Sorry I didn't include all of the information at once.
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