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QUESTION
Fama's Llamas has a weighted average cost of capital of 12 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 8...
Fama's Llamas has a weighted average cost of capital of 12 percent. The company's cost of equity is 16 percent, and its pretax cost of debt is 8 percent. The tax rate is 33 percent. The company's target debt−equity ratio is
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