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Famas Llamas has a WACC of 10.2 percent. The companys cost of equity is 13 percent, and its cost of debt is 7 percent. The
| Famas Llamas has a WACC of 10.2 percent. The companys cost of equity is 13 percent, and its cost of debt is 7 percent. The tax rate is 35 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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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
