6. 11. Finding the target capital structure [LO 14.3] Famas Llamas has a weighted average cost of...
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6. 11.
Finding the target capital structure [LO 14.3] Fama’s Llamas has a weighted average cost of capital of 7.9 per cent. The company’s cost of equity is 11 per cent and its pretax cost of debt is 5.8 per cent. The tax rate is 30 per cent. What is the company’s target debt-equity ratio?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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