The firms bonds trade with a yield to maturity of 8 the, Financial Management

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The firms bonds trade with a yield to maturity of 8 the

The firm's bonds trade with a yield to maturity of 8%, the risk-free rate is 3%, the beta of the firm's common stock is 1.5, and the market risk premium is 9%; if the firm were financed entirely with equity, the required return would be 10.85%. The firm's tax rate is 34%. What is this firm's debt-to-equity ratio?

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