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Alana's Sewing World had an all equity cost of capital of 12.00%. When the firm switched to being levered its of cost of equity increased
Alana's Sewing World had an all equity cost of capital of 12.00%. When the firm switched to being levered its of cost of equity increased to 13.40% and its pretax cost debt was 7.50%. What was the firm's debt-equity ratio after the switch? ignore taxes.
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