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Famas Llamas has a WACC of 9.3 percent. The companys cost of equity is 11.2 percent, and its cost of debt is 7.9 percent. The
Famas Llamas has a WACC of 9.3 percent. The companys cost of equity is 11.2 percent, and its cost of debt is 7.9 percent. The tax rate is 34 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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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
