Question
Llamas de Fama has a weighted average cost of capital of 9.2 percent. The company's cost of capital is 12.8 percent and the cost of
Llamas de Fama has a weighted average cost of capital of 9.2 percent. The company's cost of capital is 12.8 percent and the cost of debt is 7.4 percent. The tax rate is 22 percent. What is the company's debt-to-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, for example, 32.1616.)
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
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