Fama target debt-equity ratio


Problem:

Fama's Llamas has a WACC of 11.00 percent. The company's cost of equity is 14.6 percent, and its cost of debt is 8.2 percent. The tax rate is 30 percent.

Required:

Question: What is Fama's target debt-equity ratio?

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Accounting Basics: Fama target debt-equity ratio
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