Fama’s Llamas has a WACC of 10.50 percent. The company’s cost of equity is 14 percent, and its cost of debt is 8 percent. The tax rate is 35 percent. What is Fama’s target debt-equity ratio?
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Fama’s Llamas has a WACC of 10.50 percent. The company’s cost of equity is 14 percent, and its cost of debt is 8 percent. The tax rate is 35 percent. What is Fama’s target debt-equity ratio?