Question
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of equity is 13 percent, and its pretax cost of
Fama's Llamas has a weighted average cost of capital of 9 percent. The company's cost of equity is 13 percent, and its pretax cost of debt is 7 percent. The tax rate is 40 percent. What is the company's target debt-equity ratio?
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
