What is target debt-equity ratio

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Reference no: EM13950116

Fama’s Llamas has a WACC of 10.9 percent. The company’s cost of equity is 14.4 percent, and its cost of debt is 8.3 percent. The tax rate is 38 percent.

Required:

What is Fama’s target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)

Reference no: EM13950116

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