Famas Llamas has a weighted average cost of capital of 8.6 percent. The companys cost of equity
Question:
Fama’s Llamas has a weighted average cost of capital of 8.6 percent. The company’s cost of equity is 11.2 percent and its pretax cost of debt is 6.4 percent. The tax rate is 21 percent. What is the company’s debt-equity ratio?
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Here we have the WACC and need to find the debtequity ratio of the comp...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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