Question: 4 Problem 14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 10.4 percent. The company's cost of

4 Problem 14-11 Finding the Target Capital Structure [LO3] Fama's Llamas

4 Problem 14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 10.4 percent. The company's cost of equity is 11 percent, and its pretax cost of debt is 6.3 percent. The tax rate is 22 percent. What is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) 10 points Sklpped Debt-equity ratio

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