1. 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?

Answer rating: 100% (QA)

Given information Levered cost of equity Ke 1260 Pretax cost of debt Kd 65 Unlevered cost of capital ... View the full answer