What is the company target debt-equity ratio

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Reference no: EM132039142

Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 8 percent. The tax rate is 39 percent. What is the company's target debt-equity ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. For example, 1.2345 should be entered as 1.23.

Reference no: EM132039142

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