Weighted average-what is company target debt-equity ratio

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Reference no: EM13947151

Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 14 percent, and its pretax cost of debt is 9 percent. The tax rate is 40 percent. What is the company's target debt-equity ratio?

Reference no: EM13947151

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