Sparky Inc. has a WACC of 9.078%. The companys equity beta is 1.3 and its semi-annual coupon bonds have a yield-to-maturity of 7.2% (APR, semi-annually compounded). The risk-free rate is 3.0%, the expected return on the market portfolio is 10.0%, and the tax rate is 35%.

What Sparky's debt-to-equity (D/E) ratio?

Select one:

0.41

0.70

0.62

0.59

1.73

1.00

0.50

Insufficient information, too many unknown variables.