What is the company debt

What is the company debt–equity ratio

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Reference no: EM131328983

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 cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company’s debt–equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Debt−equity ratio

Reference no: EM131328983

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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 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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