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Famas Llamas has a weighted average cost of capital of 11 percent. The companys cost of equity is 13 percent, and its pretax cost of

Famas Llamas has a weighted average cost of capital of 11 percent. The companys cost of equity is 13 percent, and its pretax cost of debt is 9 percent. The tax rate is 40 percent. What is the companys target debtequity ratio?

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