What is the companys target debt and equity ratio

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Reference no: EM13731403

Fama’s Llamas has a weighted average cost of capital of 10.3 percent. The company’s cost of equity is 12 percent, and its pre-tax cost of debt is 8.3 percent. The tax rate is 38 percent. What is the company’s target debt and equity ratio?

Reference no: EM13731403

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