Masters level finance- need one problem solved- due Thursday 11/8

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Hello,

 

I just need one problem answered. It’s just text answer. There isn’t any problem solving involved. The problem I need done is P14-24.

Question:

Some companies’ debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm’s outstanding bonds. What are the pros and cons of setting a target rating, rather than a target ratio?

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