What is the company debt-equity ratio

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Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 11 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company's debt-equity ratio?

Reference no: EM131063641

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What is the company debt-equity ratio : Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 11 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company's debt-equity ratio?

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