Famarsquos llamas has a weighted average cost of capital of
Fama’s Llamas has a weighted average cost of capital of 10.2 percent. The company’s cost of equity is 14 percent and its pretax cost of debt is 8.4 percent. The tax rate is 35 percent. What is the company’s target debt-equity ratio?
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go to the federal reserves web site wwwfederal reservegov follow the links to monetary policy and the fomc and find the
famarsquos llamas has a weighted average cost of capital of 102 percent the companyrsquos cost of equity is 14 percent
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