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| After tax rate = YTM * (1-Tax rate) |
| After tax rate = 6.9 * (1-0.24) |
| After tax rate = 5.24 |
| Cost of Capital = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt |
| 9.6 = 11*Weight of Equity+5.24*(1-weight of Equity) |
| Weight of Equity = 0.7569 |
| Weight of Debt =1-weight of Equity=1-0.7569=0.2431 |
D/E = 0.2431/0.7569
=0.3212
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