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Famas Llamas has a weighted average cost of capital of 9.4 percent. The companys cost of equity is 13 percent, and its pretax cost of

Famas Llamas has a weighted average cost of capital of 9.4 percent. The companys cost of equity is 13 percent, and its pretax cost of debt is 6.7 percent. The tax rate is 22 percent. What is the companys target debt-equity ratio?

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