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1. Fama's Llamas has a weighted average cost of capital of 12 percent. The company's cost of equity is 17.5 percent, and its pretax cost

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1. Fama's Llamas has a weighted average cost of capital of 12 percent. The company's cost of equity is 17.5 percent, and its pretax cost of debt is 8 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? (Do not round your Intermediate calculations.) O 07684 O 08412 O 08493 1.375 O 08088

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