Famas Llamas has a WACC of 8.4 percent. The companys cost of equity is 11 percent, and
Question:
Fama’s Llamas has a WACC of 8.4 percent. The company’s cost of equity is 11 percent, and its pretax cost of debt is 5.8 percent. The tax rate is 25 percent. What is the company’s target debt-equity ratio?
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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