Question
Famas Llamas has a WACC of 8.95 percent. The companys cost of equity is 10.4 percent, and its pretax cost of debt is 5.3 percent.
Famas Llamas has a WACC of 8.95 percent. The companys cost of equity is 10.4 percent, and its pretax cost of debt is 5.3 percent. The tax rate is 21 percent. What is the companys target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
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Auditing
Authors: Alan Millichamp, John Taylor
12th Edition
1473778999, 9781473778993
