Famarsquos llamas has a wacc of 103 percent the, Financial Management

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Famarsquos llamas has a wacc of 103 percent the

Fama’s Llamas has a WACC of 10.3 percent. The company’s cost of equity is 13.2 percent, and its pretax cost of debt is 8.9 percent. The tax rate is 40 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.)

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Financial Management: Famarsquos llamas has a wacc of 103 percent the

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