Evaluate the companys target debt


Fama's Llamas has a weighted average cost of capital of 9.6 percent. The company's 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 company's target debt?equity ratio?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Evaluate the companys target debt
Reference No:- TGS0729800

Expected delivery within 24 Hours