Question: Problem 14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 10.5 percent. The company's cost of equity

Problem 14-11 Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 10.5 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 8.5 percent The tax rate is 35 percent What is the company's target debit-equity ralio? (Do not round intermediate calculations and round your final answer to 4 decimal places, 6.0 32.1616.) Debt-equily ratio

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