Question
Famas Llamas has a weighted average cost of capital of 9.6 percent. The companys cost of equity is 12 percent, and its pretax cost of
Famas Llamas has a weighted average cost of capital of 9.6 percent. The companys cost of equity is 12 percent, and its pretax cost of debt is 7.9 percent. The tax rate is 35 percent. What is the companys target debtequity ratio?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
