What is the companys target debt-equity ratio

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Question: Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is 14 percent, and its pretax cost of debt is 6.8 percent. The tax rate is 23 percent. What is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Reference no: EM133322747

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