What is the company debt equity ratio

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Reference no: EM132034193

1. Fama's llamas has a weighted average cost of capital of 9.6 percent. the companys cost of equity is 12 percent, and its pretax cost of debt is 7.9 percent. the tax rate is 35 percent. What is the companys debt equity ratio?

2. How did you get the interest and taxes inputs for the end calculations for after the capitalization? The 50,000 and 600,000 inputs, how are these calculated?

3. The sensitivity of bond prices to yield changes BLANK at a BLANK rate as term to maturity BLANK.

A) decreases; increasing; decreases

B) decreases; decreasing; decreases

C) increases; increasing; increases

D) decreases; decreasing; increases

Reference no: EM132034193

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