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Fama's Llamas has a weighted average cost of capital of 1 3 percent. The company's cost of equity is 1 7 . 5 percent, and

Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost
of equity is 17.5 percent, and its pretax cost of debt is 8 percent. The tax rate is 35
percent. What is the company's target debt-equity ratio?
Multiple Choice
0.6
0.5481
0.9
0.6058
0.5769
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