Question 19

value: 2.00 points 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 17 percent, and its pretax cost of debt is 9 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.) 2.2 O 1.0221 0.9248 O 1.0124 0.9735