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Famas Llamas has a WACC of 9.4 percent. The companys cost of equity is 11.4 percent, and its pretax cost of debt is 7.8 percent.

Famas Llamas has a WACC of 9.4 percent. The companys cost of equity is 11.4 percent, and its pretax cost of debt is 7.8 percent. The tax rate is 30 percent. What is the companys target debtequity ratio?

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