Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 9 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio?

Fama's Llamas has a welghted average cost of capital of 13 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 9 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? Multiple Choice 0.3986 0.4406 0.4364 0.4196 0.75