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Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital...

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Accounting

Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 8.5 percent. The company's cost of equity is 11 percent, and its pretax cost of debt is 6.1 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio?

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