Question
Famas Llamas has a WACC of 10 percent. The companys cost of equity is 12.6 percent, and its pretax cost of debt is 7.2 percent.
Famas Llamas has a WACC of 10 percent. The companys cost of equity is 12.6 percent, and its pretax cost of debt is 7.2 percent. The tax rate is 40 percent.
What is the companys target debtequity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Debtequity ratio
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
