What is famas debt equity ratio

Assignment Help Finance Basics
Reference no: EM13298708

Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company cost of equity is 15 percent, and its cost of debt is 7.5 percent. The tax rate is 35 percent. What is Fama's debt equity ratio?

Reference no: EM13298708

Questions Cloud

Explain a buffer is prepared by adding sodium acetate : A buffer is prepared by adding 21.0g of sodium acetate ({\rm CH_3 COONa}) to 520mL of a 0.140M acetic acid ({\rm CH_3 COOH}) solution.
Find the magnetic field strength in the center of the tank : In one such test, 150 turns of wire were wrapped around a 7.0-m-diameter cylindrical shark tank. find the magnetic field strength in the center of the tank
Formulate a linear programming model : Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.
Determine the specifc energy of water in the channel : A rectangular channel is 25ft wide and has a flow of 500 cfs at a velocity of 5ft/s. (a) Determine the specifc energy of water in the channel. (b) What is the criticl depth of water in the channel (c) What is the critical velocity
What is famas debt equity ratio : Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company cost of equity is 15 percent, and its cost of debt is 7.5 percent. The tax rate is 35 percent. What is Fama's debt equity ratio?
State what is the ph of a solution that is in nh4cl : NH3 is a weak base (Kb = 1.8 × 10-5) and so the salt NH4Cl acts as a weak acid. What is the pH of a solution that is 0.080 M in NH4Cl
Is the correct difference in elevation between a and b : A level is set up midway between two wood stakes that are about 300 feet apart. The rod reading on Stake A is 9.65 ft and the reading on stake B is 4.23 ft. The level is then set up 6 feet in front of stake B.
What is the present value of expected future stock price : Given that the first dividend [ayment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3 and then sum these PVs.
Compute the frequency of the sound waves emitted from train : A standing observer perceives a train whistle to have a frequency of 300 Hz. compute the frequency of the sound waves emitted from the train

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the floor value of this bond

Today's closing stock price was $20. What is the floor value of this bond?

  Why are they unable to obtain venture capital financing

Discuss what types of companies typically require venture capital financing and identify other company types that are unable to generate financing though venture capital. Why are they unable to obtain venture capital financing?

  What is fama target debt-equity ratio

Fama's Llamas has a WACC of 10.80 percent. The company's cost of equity is 14.2 percent, and its cost of debt is 8.4 percent. The tax rate is 40 percent.

  What is present value of the girls fortune

If the appropriate discount rate is 7% annually, what is present value of the girl's fortune?

  Establishment of a lockbox system

Linkup Systems, which provides shareholders with computerized information about stock prices, is planning the establishment of a lockbox system with its bank.

  What is the current share price

Apocalyptica Corp. pays a constant $8.30 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current sha..

  Open end mutual fund investing in us

Suppose you have decided to buy a diversified open-end mutual fund investing in U.S. common stocks. Because there are thousands of these funds available,

  Why does the us government collect data on inventory levels

Why does the US government collect data on inventory levels? Why do inventories matter?

  What is the equation for facilities cost

Using the high low method, with student credit hours as the activity driver, what is the equation for facilities cost (FC) as a function of student credit hours?

  What trade should you make

What trade should you make? How much margin would you have to post to your account ? At what price would you receive a margin call?

  What is the efficient market hypothesis

What is the Efficient Market Hypothesis, what are is three forms, AND what are its implications?

  Determine the expected return on a portfolio

Suppose you are planning three stocks with the following expected dividends yields and gains, Determine the expected return on a portfolio consisting of 40% in stock A and 60 % in stock B

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd