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Klausing Corp. has a cost of debt capital of 2%, a cost of equity capital of 19% and a cost of project capital of 12%.

Klausing Corp. has a cost of debt capital of 2%, a cost of equity capital of 19% and a cost of project capital of 12%. Assume perfect capital markets.

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What is the company's debt-equity ratio? Equity Debt Hint: The ratio is, by construction, 1 Equity + Debt Equity + Debt X X Y Also note that even if you don't know X or Y Y X+Y' X+Y

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