Fama’s Llamas has a WACC of 10.9 percent. The company’s cost of equity is 14.4 percent, and its cost of debt is 8.3 percent. The tax rate is 38 percent.
Required:
What is Fama’s target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).)