Fama's Llamas has a weighted average cost of capital of 12 percent. The company's cost of equity is 15.5 percent, and its pretax cost of debt is 8 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.)
A) 0.875
B) 0.5069
C) 0.5549
D) 0.5335
E) 0.5602