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Fama's Llamas has a weighted average cost of capital of 12 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 12 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 9 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio? Multiple Choice 0.7959 0.8036 O 0.7653 0.727

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