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Famas Llamas has a WACC of 10.4 percent. The companys cost of equity is 13.4 percent, and its pretax cost of debt is 8.8 percent.

Famas Llamas has a WACC of 10.4 percent. The companys cost of equity is 13.4 percent, and its pretax cost of debt is 8.8 percent. The tax rate is 38 percent. What is the companys target debtequity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

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