Company SOME PROJECTS S$.$A$.$ has a weighted average cost of capital of

$11\mathrm{.}8\%.$ The company's equity cost is $16\%,$ and the cost of its bank debt is $5\mathrm{.}5\%.$

The tax rate is $35\%.$ Calculate the company's debt$-$to$-$equity ratio resulting from

the above data. Assume that the business uses only two sources of financing:

equity and bank borrowing