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Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 18 percent, and its pretax cost of

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Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 18 percent, and its pretax cost of debt is 9 percent. The tax rate is 31 percent What is the company's target debt-equity ratio? 01 Multiple Choice 1.5198 13883 1.5344 14614 O 3.5 ! 994 4 6

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