What is company target debt-equity ratio

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Reference no: EM131558541

Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 7 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.)

Reference no: EM131558541

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