Question
Famas Llamas has a WACC of 10.8 percent. The companys cost of equity is 14.2 percent, and its pretax cost of debt is 8.4 percent.
Famas Llamas has a WACC of 10.8 percent. The companys cost of equity is 14.2 percent, and its pretax cost of debt is 8.4 percent. The tax rate is 40 percent. What is the companys target debtequity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Debtequity ratio ?
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
