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Fama s Llamas has a weighted average cost of capital of 8 . 9 percent. The company s cost of equity is 1 2 .

Famas Llamas has a weighted average cost of capital of 8.9 percent. The companys cost of equity is 12.5 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the companys debt-equity ratio?

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