Famas Llamas has a weighted average cost of capital of 9.4 percent. The companys cost of equity
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Question:
Famas Llamas has a weighted average cost of capital of 9.4 percent. The companys cost of equity is 11 percent, and its pretax cost of debt is 7.4 percent. The tax rate is 40 percent. What is the company's debt-equity ratio? (Do not round intermediate calculations and round your final answer to 4 decimal places (e.g., 32.1616).) |
Debtequity ratio |
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