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Famas Llamas has a WACC of 10 percent. The companys cost of equity is 12.6 percent, and its cost of debt is 7.2 percent. The
| Famas Llamas has a WACC of 10 percent. The companys cost of equity is 12.6 percent, and its cost of debt is 7.2 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).) |
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Quantitative Corporate Finance
Authors: John B. Guerard Jr. Anureet Saxena, Mustafa Gultekin
2nd Edition
3030435466, 978-3030435462
