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Fama's Llamas has a weighted average cost of capital of 8 percent. The company's cost of equity is 1 3 percent, and its pretax cost

Fama's Llamas has a weighted average cost of capital of 8 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 6 percent. The tax rate is 40 percent. What is the company's target debt-equity ratio?
(Do not round intermediate calculations and round your final answer to 2 decimal places. For example, 1.2345 should be entered as 1.23.)

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