Question
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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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
