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Auto Care has a pretax cost of debt of 6.6 percent and an unlevered cost of capital of 14.6 percent. The firm's tax rate is

Auto Care has a pretax cost of debt of 6.6 percent and an unlevered cost of capital of 14.6 percent. The firm's tax rate is 34 percent and the cost of equity is 15.8 percent. What is the firm's debt-equity ratio?

.54

.61

.77

.23

.39

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