Famarsquos llamas has a weighted average cost of capital of


Fama’s Llamas has a weighted average cost of capital of 9.2 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.2 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio? (Do not round intermediate calculations and round your final answer to 4 decimal places. (e.g., 32.1616))

Debt−equity ratio

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Famarsquos llamas has a weighted average cost of capital of
Reference No:- TGS01249580

Expected delivery within 24 Hours