Question
Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 8.5 percent. The company's cost of equity is 11
Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of 8.5 percent. The company's cost of equity is 11 percent, and its pretax cost of debt is 6.1 percent. The tax rate is 35 percent. What is the company's target debt-equity ratio?
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Financial Accounting Tools For Business Decision-Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Canadian Edition
0470833378, 978-0470833377
