The companys cost of equity is 12 pre tax cost of debt is 8
Target Capital structure
Fama's Lama has a weighted average cost of capita of 10%. The company's cost of equity is 12%, pre tax cost of debt is 8%. If the tax rate is 0% then what is the target debt to equity ratio?
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target capital structurefamas lama has a weighted average cost of capita of 10 the companys cost of equity is 12 pre
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