What is the company target debt

What is the company target debt–equity ratio

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Reference no: EM131336218

Fama’s Llamas has a WACC of 10.7 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 35 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., 32.1616.) Debt–equity ratio

Reference no: EM131336218

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What is the company target debt–equity ratio : Fama’s Llamas has a WACC of 10.7 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 35 percent. What is the company’s target debt–equity ratio?

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