Famarsquos llamas has a weighted average cost of capital of
Fama’s Llamas has a weighted average cost of capital of 10.1 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 8.1 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio?
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famarsquos llamas has a weighted average cost of capital of 101 percent the companyrsquos cost of equity is 13 percent
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