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please use WACC=WeRe+WdRd(1-T) how to get D/E Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is
please use WACC=WeRe+WdRd(1-T) how to get D/E
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 8 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.) Multuple Choice 1 05778 0.5556 05278 Step by Step Solution
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