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Famas Llamas has a WACC of 10.3 percent. The companys cost of equity is 13.2 percent, and its cost of debt is 8.9 percent. The

Famas Llamas has a WACC of 10.3 percent. The companys cost of equity is 13.2 percent, and its cost of debt is 8.9 percent. The tax rate is 40 percent.

Required:

What is Famas target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)

Debt-equity ratio:

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