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A firms weighted average cost of capital is 20%. The corporate tax rate is 40% and its cost of debt and equity are 25% and

A firms weighted average cost of capital is 20%. The corporate tax rate is 40% and its cost of debt and equity are 25% and 30% respectively. What is the firms debt to equity ratio?

A. 1.5
B. 0.5
C. 2
D. 2/3

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