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Turin Corp. has a weighted average cost of capital of 8.5 percent. The companys cost of equity is 11 percent and its pre-tax cost of

Turin Corp. has a weighted average cost of capital of 8.5 percent. The companys cost of equity is 11 percent and its pre-tax cost of debt is 6.1 percent. The tax rate is 35 percent. What is the companys target debt/equity ratio?

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