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Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 16.5 percent, and its pretax cost of

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Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is 16.5 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio? Multiple Choice 0.9429 0.9339 1.5714 0.8531 0.898 Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 31 percent, what is the aftertax cost of Ying's debt? Multiple Choice 4.23\% 4.18% 4.63% 6.38% 4.41%

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