Buhao Construction Corp currently is all-equity-financed. It has 25,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $350,000 with the proceeds used to buy back stock. The debt will pay an interest rate of 10%. The firm pays no taxes.

What will be the debt-to-equity ratio if it borrows $350,000 with those proceeds used to buy back stock ? Hint: stock buy backs reduce the total number of shares outstanding (Round your answer to 2 decimal places.)

debt-to-equity ratio: _______