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Need help finding the Debt-equity ratio, the problem is in the attachment. Question 13 Fama's Llamas has a WACC of 9.5 percent. The company's cost
Need help finding the Debt-equity ratio, the problem is in the attachment.
Question 13 Fama's Llamas has a WACC of 9.5 percent. The company's cost of equity is 11.6 percent, and its cost of debt is 7.7 percent. The tax rate is 34 percent. Required: What is Fama's target debt-equity ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places (e.g., 32.1616).) Debt-equity ratio 0.4705Step by Step Solution
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