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2. Famas Llamas has a WACC of 10.8 percent. The companys cost of equity is 14.2 percent, and its cost of debt is 8.4 percent.
2.
Famas Llamas has a WACC of 10.8 percent. The companys cost of equity is 14.2 percent, and its cost of debt is 8.4 percent. The tax rate is 40 percent. |
Required: |
What is Famas target debt-equity ratio?(Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).) |
Debtequity ratio |
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