Question
Famas Llamas has a WACC of 10.7 percent. The companys cost of equity is 14 percent, and its pretax cost of debt is 8.5 percent.
Famas Llamas has a WACC of 10.7 percent. The companys cost of equity is 14 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 35 percent. What is the companys target debtequity ratio?
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International Corporate Finance
Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant
1st Edition
0030693063, 9780030693069
