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Finding the Target Capital Structure. Fama's Llamas has a WACC of 8.65 percent. The company's cost of equity is 10.4 percent, and its pretax cost

Finding the Target Capital Structure. Fama's Llamas has a WACC of 8.65 percent. The company's cost of equity is 10.4 percent, and its pretax cost of debt is 5.3 percent. The tax rate is 35 percent. What is the company's target debtequity ratio?

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