Question
Fama's Llamas has a WACC of 9.4 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 6.7
Fama's Llamas has a WACC of 9.4 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 6.7 percent. The tax rate is 22 percent. What is the company's target debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.
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Essentials Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th Edition
1265414963, 978-1265414962
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