Question
Famas Llamas has a weighted average cost of capital of 10.5 percent. The companys cost of equity is 13 percent, and its pretax cost of
Famas Llamas has a weighted average cost of capital of 10.5 percent. The companys cost of equity is 13 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 35 percent. What is the companys target debtequity ratio?
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
