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Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 16.5 percent, and its pretax cost of
Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 8 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio? Multiple Choice 0.8889 0.5263 0.554 0.5817 0.5762 Step by Step Solution
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
