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P14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is

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P14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 7 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.) O 0.4883 O 0.514 O 0.5396 O 0.7778 0.5345

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