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Question: Finding the Target Capital Structure. Fama's Llamas has a WACC of 8.65 percent. The company's cost of equity is 10.4 percent, and its pretax cost of debt is 5.3 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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