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Judson Inc. recently issued new securities to finance a new TV show.

The project cost $13.5 million, and the company paid $675,000 in flotation costs. In addition, the equity issued had a flotation cost of 6.5% of the amount raised, whereas the debt issued had a flotation cost of 2.5% of the amount raised. If Judson issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations. Round the final answer to 4 decimal places.)

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Subject: Business, Finance

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