Question
Famas Llamas has a WACC of 10.1 percent. The companys cost of equity is 12.8 percent, and its cost of debt is 7.1 percent. The
| Famas Llamas has a WACC of 10.1 percent. The companys cost of equity is 12.8 percent, and its cost of debt is 7.1 percent. The tax rate is 34 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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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
