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Fama's Llamas has a weighted average cost of capital of 10.5 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 10.5 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 31 percent. What is the company's target debt-equity ratio? Multiple Choice 3 1.3463 1.2945 1.3592 1.2298

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