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Fama's Llamas has a weighted average cost of capital of 1 0 percent. The company's cost of equity is 1 6 . 5 percent, and

Fama's Llamas has a weighted average cost of capital of 10 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 8 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio?
Multiple Choice
3.25
1.4254
1.3542
1.4825
1.4967

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