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Kountry Kitchen has a cost of equity of 10.6 percent, a pretax cost of debt of 5.2 percent, and the tax rate is 39 percent.

Kountry Kitchen has a cost of equity of 10.6 percent, a pretax cost of debt of 5.2 percent, and the tax rate is 39 percent. If the company's WACC is 7.59 percent, what is its debtequity ratio (i.e., ratio of market value of debt over market value of equity)?

Group of answer choices

1.34

.68

.37

.27

5.0

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