Question
Famas Llamas has a WACC of 9.9 percent. The companys cost of equity is 12.4 percent, and its pretax cost of debt is 7.3 percent.
Famas Llamas has a WACC of 9.9 percent. The companys cost of equity is 12.4 percent, and its pretax cost of debt is 7.3 percent. The tax rate is 38 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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Personal Finance
Authors: McGraw Hill
Student Edition
0078958393, 978-0078958397
