Question: Company SOME PROJECTS S . A . has a weighted average cost of capital of 1 1 . 8 % . The company's equity cost

Company SOME PROJECTS S.A. has a weighted average cost of capital of
11.8%. The company's equity cost is 16%, and the cost of its bank debt is 5.5%.
The tax rate is 35%. Calculate the company's debt-to-equity ratio resulting from
the above data. Assume that the business uses only two sources of financing:
equity and bank borrowing

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