Question: Finding the Target Capital Structure Famas LIamas has a weighted average cost of capital of 10.2 percent. The companys cost of equity is 14 percent,

Finding the Target Capital Structure Fama’s LIamas has a weighted average cost of capital of 10.2 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 8.4 percent. The tax rate is 35 percent. What is the company’s target debt-equity ratio?

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