Question
Fama's Llamas has a WACC of 9.5 percent. The company's cost of equity is 14 percent, and its pretax cost of debt is 6.8
Fama's Llamas has a WACC of 9.5 percent. The company's cost of equity is 14 percent, and its pretax cost of debt is 6.8 percent. The tax rate is 23 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. Debt-equity ratio
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
