Brinx is currently a levered firm. The company has a levered cost of equity of 12.60 percent and a pretax cost of debt o

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answerhappygod
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Brinx is currently a levered firm. The company has a levered cost of equity of 12.60 percent and a pretax cost of debt o

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Brinx is currently a levered firm. The company has a levered
cost of equity of 12.60 percent and a pretax cost of debt of 6.5
percent. If the company is unlevered, its cost of capital will be
9.54%. The tax rate is 37 percent. What is the company's current
debt-equity ratio?
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