Question
Famas Llamas has a WACC of 10.3 percent. The companys cost of equity is 13.2 percent, and its pretax cost of debt is 8.9 percent.
Famas Llamas has a WACC of 10.3 percent. The companys cost of equity is 13.2 percent, and its pretax cost of debt is 8.9 percent. The tax rate is 40 percent. What is the companys target debtequity ratio?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
