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14-10 10 Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 17.5 percent, and its pretax

14-10

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10 Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 17.5 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio? 10 points Multiple Choice 1.0749 1.0853 1.0336 0.9819

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