Question: Neal Enterprises has no debt. Its current total value is $70.4 million. Assume the company sells $32.2 million in debt. Ignoring taxes, the debt-equity ratio

Neal Enterprises has no debt. Its current total value is $70.4 million. Assume the company sells $32.2 million in debt.

Ignoring taxes, the debt-equity ratio is 0.84. Assume the companys tax rate is 38 percent. What is the debt-equity ratio?

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