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Famas Llamas has a WACC of 10.6 percent. The companys cost of equity is 13.8 percent, and its cost of debt is 8.6 percent. The

Famas Llamas has a WACC of 10.6 percent. The companys cost of equity is 13.8 percent, and its cost of debt is 8.6 percent. The tax rate is 34 percent.

Required:

What is Famas target debt-equity ratio?

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