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Business, 27.06.2020 20:01 khloenm309

Fama’s Llamas has a weighted average cost of capital of 9.3 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 6.6 percent. The tax rate is 21 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e. g., .1616.)

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Fama’s Llamas has a weighted average cost of capital of 9.3 percent. The company’s cost of equity is...
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