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Problem 13-9 Finding the Capital Structure Famas Llamas has a weighted average cost of capital of 10.5 percent. The companys cost of equity is 16.5

Problem 13-9 Finding the Capital Structure Famas Llamas has a weighted average cost of capital of 10.5 percent. The companys cost of equity is 16.5 percent, and its cost of debt is 7 percent. The tax rate is 35 percent.

Required: What is Famas debt-equity ratio?

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