Famarsquos llamas has a wacc of 109 percent the


Fama’s Llamas has a WACC of 10.9 percent. The company’s cost of equity is 14.4 percent, and its cost of debt is 8.3 percent. The tax rate is 38 percent.

Required:

What is Fama’s target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)

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Financial Management: Famarsquos llamas has a wacc of 109 percent the
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