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A company has a weighted average cost of capital of 7.5%. It's cost of equity is 10% and the average yield to maturity on its
A company has a weighted average cost of capital of 7.5%. It's cost of equity is 10% and the average yield to maturity on its bonds is 6%. If the tax rate is 35%, what is the company's market value debt-equity (D/E) ratio?
D/E Ratio = (Express answer as a decimal, rounded to 3 decimal places- ie 1.234)
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