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Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost of equity is 16.5 percent, and its pretax cost of

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Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 7 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio? Multiple Choice 0.3968 0.5833 0.4385 0.4172 0.4344

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