What is the company target debt-equity ratio

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Finding the Target Capital Structure

Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 17 percent, and its pretax cost of debt is 8 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.)

Reference no: EM131920171

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