Please show intermediate steps and formulas.
The Mallory Corporation has a weighted average cost of capital of 11.5%. The company's cost of equity is 16%, and its cost of debt is 8.5%. The tax rate is 35%. What is the firm's debt-equity ratio?© BrainMass Inc. brainmass.com March 4, 2021, 8:15 pm ad1c9bdddf
Please see the response to your posting as below:
Let X% of total capital is financed by equity.
Therefore (100-X%) is financed ...
Solution shows calculations of debt-equity ratio.