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Kountry Kitchen has a cost of equity of 10.8 percent, a pretax cost of debt of 6.3 percent, and the tax rate is 21 percent.

Kountry Kitchen has a cost of equity of 10.8 percent, a pretax cost of debt of 6.3 percent, and the tax rate is 21 percent. If the company's WACC is 9.01 percent, what is its debt-equity ratio?

  • .49

  • .44

  • .27

  • 2.75

  • 1.33

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