Question
Famas Llamas has a WACC of 9.6 percent. The companys cost of equity is 11.8 percent, and its pretax cost of debt is 7.6 percent.
Famas Llamas has a WACC of 9.6 percent. The companys cost of equity is 11.8 percent, and its pretax cost of debt is 7.6 percent. The tax rate is 35 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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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
