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Haykal Inc operates in perfect capital markets pays 5% on its debt and its cost of equity is 15%. If the firm's weighted average cost

Haykal Inc operates in perfect capital markets pays 5% on its debt and its cost of equity is 15%. If the firm's weighted average cost of capital is 10%, what is the firm's equity-to-debt ratio (E/D) ratio?

Select one:

a. 1.0

b. 1.5

c. 0.5

d. 2.0

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