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Safegaurd Inc. has a weighted average cost of capital of 8.5%. The companys cost of equity is 11% and its pretax cost of debt is

Safegaurd Inc. has a weighted average cost of capital of 8.5%. The companys cost of equity is 11% and its pretax cost of debt is 6.1%. The tax rate is 35%. What is the companys target debt-equity ratio?

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