Question
Famas Llamas has a WACC of 9.7 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.
Famas Llamas has a WACC of 9.7 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.5 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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Financial Freedom
Authors: Timothy Turner
1st Edition
1801573573, 978-1801573573
