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Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 17.5 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 17.5 percent, and its pretax cost of debt is 7 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio? 1.0417 1.0833 0.9896 1.0937 1.625

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